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Leases | 12 Months Ended
--- | ---
Dec. 31, 2021
Leases [Abstract] |
Leases | LeasesThe Company leases certain grain handling and storage facilities, ethanol storage terminals, warehouse space, railcars, locomotives, barges, 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 balance sheet and lease expense for these leases is recognized 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 |  | 2021 |  | 2020
Assets |  |  |  |  |  |
Operating lease assets |  | Right of use assets, net |  | $ | 52,146 |  |  | $ | 33,387 |
Finance lease assets |  | Property, plant and equipment, net |  | 23,895 |  |  | 25,921 |
Total leased assets |  |  |  | 76,041 |  |  | 59,308 |
Liabilities |  |  |  |  |  |
Current operating leases |  | Accrued expenses and other current liabilities |  | 19,580 |  |  | 12,588 |
Non-current operating leases |  | Long-term lease liabilities |  | 31,322 |  |  | 19,835 |
Total operating lease liabilities |  |  |  | 50,902 |  |  | 32,423 |
Current finance leases |  | Current maturities of long-term debt |  | 2,118 |  |  | 2,564 |
Non-current finance leases |  | Long-term debt |  | 10,762 |  |  | 22,522 |
Total finance lease liabilities |  |  |  | 12,880 |  |  | 25,086 |
Total lease liabilities |  |  |  | $ | 63,782 |  |  | $ | 57,509 |
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 |  | 2021 |  | 2020 |  | 2019
Lease cost: |  |  |  |  |  |  |  |
Operating lease cost |  | Cost of sales and merchandising revenues |  | $ | 13,016 |  |  | $ | 10,968 |  |  | $ | 9,469 |
Operating lease cost |  | Operating, administrative and general expenses |  | 10,324 |  |  | 10,678 |  |  | 13,517 |
Finance lease cost |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | Cost of sales and merchandising revenues |  | 978 |  |  | 932 |  |  | 111 |
Amortization of right-of-use assets |  | Operating, administrative and general expenses |  | 1,008 |  |  | 1,008 |  |  | 1,008 |
Interest expense on lease liabilities |  | Interest expense, net |  | 679 |  |  | 859 |  |  | 637 |
Short-term lease cost |  | Cost of sales and merchandising revenues |  | 1,349 |  |  | 66 |  |  | — |
Variable lease cost |  | Cost of sales and merchandising revenues |  | 458 |  |  | 80 |  |  | — |
Variable lease cost |  | Operating, administrative and general expenses |  | 231 |  |  | 260 |  |  | 197 |
Total lease cost |  |  |  | $ | 28,043 |  |  | $ | 24,851 |  |  | $ | 24,939 |
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 | 2021 |  | 2020
Operating leases | 3.9 years |  | 4.4 years
Finance leases | 7.2 years |  | 8.5 years
The discount rate implicit within our 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 | 2021 |  | 2020
Operating leases | 2.63 | % |  | 3.67 | %
Finance leases | 3.30 | % |  | 3.84 | %
Supplemental Cash Flow Information Related to Leases
| Year Ended December 31,
(in thousands) | 2021 |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 29,304 |  |  | $ | 28,444 |  |  | $ | 25,304 |
Operating cash flows from finance leases | — |  |  | 1,289 |  |  | 1,023 |
Financing cash flows from finance leases | 12,538 |  |  | 4,115 |  |  | 1,973 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |
Operating leases | 35,024 |  |  | 15,160 |  |  | 29,427 |
Finance leases | 364 |  |  | 4,972 |  |  | 16,998 |
Maturity Analysis of Leases Liabilities
| 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 |
| December 31, 2020
(in thousands) | Operating Leases |  | Finance Leases |  | Total
2021 | $ | 13,428 |  |  | $ | 3,274 |  |  | $ | 16,702 |
2022 | 9,435 |  |  | 3,281 |  |  | 12,716 |
2023 | 5,222 |  |  | 3,282 |  |  | 8,504 |
2024 | 3,082 |  |  | 3,154 |  |  | 6,236 |
2025 | 563 |  |  | 2,210 |  |  | 2,773 |
Thereafter | 2,404 |  |  | 14,008 |  |  | 16,412 |
Total lease payments | 34,134 |  |  | 29,209 |  |  | 63,343 |
Less: interest | 1,711 |  |  | 4,123 |  |  | 5,834 |
Total | $ | 32,423 |  |  | $ | 25,086 |  |  | $ | 57,509 |
Leases | LeasesThe Company leases certain grain handling and storage facilities, ethanol storage terminals, warehouse space, railcars, locomotives, barges, 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 balance sheet and lease expense for these leases is recognized 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 |  | 2021 |  | 2020
Assets |  |  |  |  |  |
Operating lease assets |  | Right of use assets, net |  | $ | 52,146 |  |  | $ | 33,387 |
Finance lease assets |  | Property, plant and equipment, net |  | 23,895 |  |  | 25,921 |
Total leased assets |  |  |  | 76,041 |  |  | 59,308 |
Liabilities |  |  |  |  |  |
Current operating leases |  | Accrued expenses and other current liabilities |  | 19,580 |  |  | 12,588 |
Non-current operating leases |  | Long-term lease liabilities |  | 31,322 |  |  | 19,835 |
Total operating lease liabilities |  |  |  | 50,902 |  |  | 32,423 |
Current finance leases |  | Current maturities of long-term debt |  | 2,118 |  |  | 2,564 |
Non-current finance leases |  | Long-term debt |  | 10,762 |  |  | 22,522 |
Total finance lease liabilities |  |  |  | 12,880 |  |  | 25,086 |
Total lease liabilities |  |  |  | $ | 63,782 |  |  | $ | 57,509 |
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 |  | 2021 |  | 2020 |  | 2019
Lease cost: |  |  |  |  |  |  |  |
Operating lease cost |  | Cost of sales and merchandising revenues |  | $ | 13,016 |  |  | $ | 10,968 |  |  | $ | 9,469 |
Operating lease cost |  | Operating, administrative and general expenses |  | 10,324 |  |  | 10,678 |  |  | 13,517 |
Finance lease cost |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | Cost of sales and merchandising revenues |  | 978 |  |  | 932 |  |  | 111 |
Amortization of right-of-use assets |  | Operating, administrative and general expenses |  | 1,008 |  |  | 1,008 |  |  | 1,008 |
Interest expense on lease liabilities |  | Interest expense, net |  | 679 |  |  | 859 |  |  | 637 |
Short-term lease cost |  | Cost of sales and merchandising revenues |  | 1,349 |  |  | 66 |  |  | — |
Variable lease cost |  | Cost of sales and merchandising revenues |  | 458 |  |  | 80 |  |  | — |
Variable lease cost |  | Operating, administrative and general expenses |  | 231 |  |  | 260 |  |  | 197 |
Total lease cost |  |  |  | $ | 28,043 |  |  | $ | 24,851 |  |  | $ | 24,939 |
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 | 2021 |  | 2020
Operating leases | 3.9 years |  | 4.4 years
Finance leases | 7.2 years |  | 8.5 years
The discount rate implicit within our 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 | 2021 |  | 2020
Operating leases | 2.63 | % |  | 3.67 | %
Finance leases | 3.30 | % |  | 3.84 | %
Supplemental Cash Flow Information Related to Leases
| Year Ended December 31,
(in thousands) | 2021 |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 29,304 |  |  | $ | 28,444 |  |  | $ | 25,304 |
Operating cash flows from finance leases | — |  |  | 1,289 |  |  | 1,023 |
Financing cash flows from finance leases | 12,538 |  |  | 4,115 |  |  | 1,973 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |
Operating leases | 35,024 |  |  | 15,160 |  |  | 29,427 |
Finance leases | 364 |  |  | 4,972 |  |  | 16,998 |
Maturity Analysis of Leases Liabilities
| 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 |
| December 31, 2020
(in thousands) | Operating Leases |  | Finance Leases |  | Total
2021 | $ | 13,428 |  |  | $ | 3,274 |  |  | $ | 16,702 |
2022 | 9,435 |  |  | 3,281 |  |  | 12,716 |
2023 | 5,222 |  |  | 3,282 |  |  | 8,504 |
2024 | 3,082 |  |  | 3,154 |  |  | 6,236 |
2025 | 563 |  |  | 2,210 |  |  | 2,773 |
Thereafter | 2,404 |  |  | 14,008 |  |  | 16,412 |
Total lease payments | 34,134 |  |  | 29,209 |  |  | 63,343 |
Less: interest | 1,711 |  |  | 4,123 |  |  | 5,834 |
Total | $ | 32,423 |  |  | $ | 25,086 |  |  | $ | 57,509 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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