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Derivatives
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company’s operating results are affected by changes to commodity prices. The Company has established “unhedged” futures position limits (the amount of a commodity, either owned or contracted for, that does not have an offsetting derivative contract). To reduce the exposure to market price risk on commodities owned and forward purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over-the-counter forward and option contracts with various counterparties. These contracts are primarily traded via regulated commodity exchanges. The Company’s forward purchase and sales contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Most contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year.

Most of these contracts meet the definition of derivatives. While the Company considers its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges as defined under current accounting standards. The Company primarily accounts for its commodity derivatives at estimated fair value. The estimated fair value of the commodity derivative contracts that require the receipt or posting of cash collateral is recorded on a net basis (offset against cash collateral posted or received, also known as margin deposits) within commodity derivative assets or liabilities. Management determines fair value based on exchange-quoted prices and in the case of its forward purchase and sale contracts, estimated fair value is adjusted for differences in local markets and non-performance risk. For contracts for which physical delivery occurs, balance sheet classification is based on estimated delivery date. For futures, options and over-the-counter contracts in which physical delivery is not expected to occur but, rather, the contract is expected to be net settled, the Company classifies these contracts as current or noncurrent assets or liabilities, as appropriate, based on the Company’s expectations as to when such contracts will be settled.

Realized and unrealized gains and losses in the value of commodity contracts (whether due to changes in commodity prices, changes in performance or credit risk, or due to sale, maturity or extinguishment of the commodity contract) and commodity inventories are included in cost of sales and merchandising revenues.

Generally accepted accounting principles permit a party to a master netting arrangement to offset fair value amounts recognized for derivative instruments against the right to reclaim cash collateral or obligation to return cash collateral under the same master netting arrangement. The Company has master netting arrangements for its exchange traded futures and options contracts and certain over-the-counter contracts. When the Company enters into a future, option or an over-the-counter contract, an initial margin deposit may be required by the counterparty. The amount of the margin deposit varies by commodity. If the market price of a future, option or an over-the-counter contract moves in a direction that is adverse to the Company’s position, an additional margin deposit, called a maintenance margin, is required. The margin deposit assets and liabilities are included in short-term commodity derivative assets or liabilities, as appropriate, in the Condensed Consolidated Balance Sheets.

The following table presents a summary of the estimated fair value of the Company’s commodity derivative instruments that require cash collateral and the associated cash posted/received 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 Condensed Consolidated Balance Sheets in Commodity derivative assets (liabilities) - current or if long-term in nature, Other assets, net or Other long-term liabilities:

(in thousands)March 31, 2025December 31, 2024March 31, 2024
Cash collateral paid (received)$(12,014)$39,025 $33,199 
Fair value of derivatives60,775 8,696 15,551 
Net derivative asset position$48,761 $47,721 $48,750 
The following table presents, on a gross basis, current and non-current commodity derivative assets and liabilities:
March 31, 2025
(in thousands)Commodity Derivative Assets - CurrentCommodity Derivative Assets - NoncurrentCommodity Derivative Liabilities - CurrentCommodity Derivative Liabilities - NoncurrentTotal
Commodity derivative assets$204,453 $9,844 $10,436 $67 $224,800 
Commodity derivative liabilities(37,411)(79)(80,084)(6,200)(123,774)
Cash collateral received(12,014)— — — (12,014)
Balance sheet line item totals$155,028 $9,765 $(69,648)$(6,133)$89,012 

December 31, 2024
(in thousands)Commodity Derivative Assets - CurrentCommodity Derivative Assets - NoncurrentCommodity Derivative Liabilities - CurrentCommodity Derivative Liabilities - NoncurrentTotal
Commodity derivative assets$165,038 $1,441 $10,158 $28 $176,665 
Commodity derivative liabilities(55,262)(28)(69,924)(425)(125,639)
Cash collateral paid39,025 — — — 39,025 
Balance sheet line item totals$148,801 $1,413 $(59,766)$(397)$90,051 

March 31, 2024
(in thousands)Commodity Derivative Assets - CurrentCommodity Derivative Assets - NoncurrentCommodity Derivative Liabilities - CurrentCommodity Derivative Liabilities - NoncurrentTotal
Commodity derivative assets$200,835 $9,764 $9,879 $107 $220,585 
Commodity derivative liabilities(53,722)(165)(78,647)(4,901)(137,435)
Cash collateral paid31,510 — 1,689 — 33,199 
Balance sheet line item totals$178,623 $9,599 $(67,079)$(4,794)$116,349 

The net pretax gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Condensed Consolidated Statements of Operations and the line items in which they are located are as follows:

 Three months ended March 31,
(in thousands)20252024
Gains (losses) on commodity derivatives included in Cost of sales and merchandising revenues$49,998 $19,342 
The Company's volumes of commodity derivative contracts outstanding (on a gross basis) are as follows:
March 31, 2025December 31, 2024March 31, 2024
(in thousands)Non-exchange TradedExchange TradedNon-exchange TradedExchange TradedNon-exchange TradedExchange Traded
Metric Tons:
Corn16,722 7,213 15,423 5,456 14,061 4,427 
Soybeans874 968 886 637 787 983 
Wheat2,788 2,755 2,409 3,365 2,455 2,900 
Oats622 15 313 5 471 4 
Other2,668 599 3,058 402 3,297 458 
Total metric tons23,674 11,550 22,089 9,865 21,071 8,772 
Gallons:
Ethanol305,896 73,794 280,999 99,162 198,453 58,944 
Propane— 58,380 — 118,986 — 104,580 
Other69,057 923 53,020 1,440 37,193 1,302 
Total gallons374,953 133,097 334,019 219,588 235,646 164,826 

Interest Rate Derivatives

The Company’s objectives for using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt or payment of variable amounts with a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The gains or losses on the derivatives designated as hedging instruments are recorded in Other comprehensive income and subsequently reclassified into Interest expense, net in the same periods during which the hedged transaction affects earnings. Amounts reported in Accumulated other comprehensive income related to derivatives will be reclassified to Interest expense, net as interest payments are made on the Company’s variable-rate debt. In the case where interest rate derivatives are settled prior to maturity, the gain or loss is recorded in Other income, net within the Condensed Consolidated Statements of Operations.

The Company had recorded the following amounts for the fair value of the interest rate derivatives:

(in thousands)March 31, 2025December 31, 2024March 31, 2024
Derivatives designated as hedging instruments
Interest rate contracts included in Other current assets$6,095 $6,761 $10,281 
Interest rate contracts included in Other assets17,106 22,723 22,579 
Interest rate contracts included in Other long-term liabilities(849)(301)— 

The recording of gains and losses on the interest rate derivatives and the financial statement line in which they are located are as follows:
Three months ended March 31,
(in thousands)20252024
Derivatives designated as hedging instruments
Interest rate derivative gains (losses) included in Other comprehensive income$(6,820)$4,843 
Interest rate derivative gains (losses) included in Interest expense, net2,074 3,385 
Interest rate derivative gains included in Other income, net— 568 
    
Outstanding interest rate derivatives, as of March 31, 2025, are as follows:
Interest Rate Hedging InstrumentYear EnteredYear of Maturity Notional Amount
(in millions)		Description


Interest Rate
Swap20192025$43.0 Interest rate component of debt - accounted for as a hedge2.4%
Swap20192025$85.9 Interest rate component of debt - accounted for as a hedge2.3%
Swap20192025$43.0 Interest rate component of debt - accounted for as a hedge2.4%
Swap20202030$50.0 Interest rate component of debt - accounted for as a hedge0.7%
Swap20202030$50.0 Interest rate component of debt - accounted for as a hedge
0.0% to 0.8%
Swap20222028$15.0 Interest rate component of debt - accounted for as a hedge3.3%
Swap20222029$100.0 Interest rate component of debt - accounted for as a hedge2.0%
Swap20222029$50.0 Interest rate component of debt - accounted for as a hedge2.4%
Swap20232031$50.0 Interest rate component of debt - accounted for as a hedge2.9%
Swap20242029$35.0 Interest rate component of debt - accounted for as a hedge4.2%