0000821026 FALSE 2024 Q1 December 31 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure utr:bu utr:gal utr:T ande:segment ande:facility 0000821026 2024-01-01 2024-03-31 0000821026 2024-04-26 0000821026 2023-01-01 2023-03-31 0000821026 2024-03-31 0000821026 2023-12-31 0000821026 2023-03-31 0000821026 2022-12-31 0000821026 us-gaap:CommonStockMember 2022-12-31 0000821026 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0000821026 us-gaap:TreasuryStockCommonMember 2022-12-31 0000821026 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0000821026 us-gaap:RetainedEarningsMember 2022-12-31 0000821026 us-gaap:NoncontrollingInterestMember 2022-12-31 0000821026 us-gaap:RetainedEarningsMember 2023-01-01 2023-03-31 0000821026 us-gaap:NoncontrollingInterestMember 2023-01-01 2023-03-31 0000821026 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-01-01 2023-03-31 0000821026 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-03-31 0000821026 us-gaap:TreasuryStockCommonMember 2023-01-01 2023-03-31 0000821026 us-gaap:CommonStockMember 2023-03-31 0000821026 us-gaap:AdditionalPaidInCapitalMember 2023-03-31 0000821026 us-gaap:TreasuryStockCommonMember 2023-03-31 0000821026 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-03-31 0000821026 us-gaap:RetainedEarningsMember 2023-03-31 0000821026 us-gaap:NoncontrollingInterestMember 2023-03-31 0000821026 us-gaap:CommonStockMember 2023-12-31 0000821026 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0000821026 us-gaap:TreasuryStockCommonMember 2023-12-31 0000821026 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-31 0000821026 us-gaap:RetainedEarningsMember 2023-12-31 0000821026 us-gaap:NoncontrollingInterestMember 2023-12-31 0000821026 us-gaap:RetainedEarningsMember 2024-01-01 2024-03-31 0000821026 us-gaap:NoncontrollingInterestMember 2024-01-01 2024-03-31 0000821026 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-01-01 2024-03-31 0000821026 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-03-31 0000821026 us-gaap:TreasuryStockCommonMember 2024-01-01 2024-03-31 0000821026 us-gaap:CommonStockMember 2024-03-31 0000821026 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0000821026 us-gaap:TreasuryStockCommonMember 2024-03-31 0000821026 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-31 0000821026 us-gaap:RetainedEarningsMember 2024-03-31 0000821026 us-gaap:NoncontrollingInterestMember 2024-03-31 0000821026 ande:EthanolReportingUnitMember 2024-01-01 2024-03-31 0000821026 ande:ElementLLCMember 2024-03-31 0000821026 us-gaap:LineOfCreditMember 2024-03-31 0000821026 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2024-03-31 0000821026 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2023-12-31 0000821026 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2023-03-31 0000821026 us-gaap:NonrecourseMember ande:ELEMENTNonRecourseDebtMember 2023-03-31 0000821026 us-gaap:CommodityContractMember ande:CommodityDerivativeAssetsCurrentMember 2024-03-31 0000821026 ande:CommodityDerivativeAssetsNoncurrentMember us-gaap:CommodityContractMember 2024-03-31 0000821026 us-gaap:CommodityContractMember ande:CommodityDerivativeLiabilitiesCurrentMember 2024-03-31 0000821026 ande:CommodityDerivativeLiabilitiesNoncurrentMember us-gaap:CommodityContractMember 2024-03-31 0000821026 us-gaap:CommodityContractMember 2024-03-31 0000821026 us-gaap:CommodityContractMember ande:CommodityDerivativeAssetsCurrentMember 2023-12-31 0000821026 ande:CommodityDerivativeAssetsNoncurrentMember us-gaap:CommodityContractMember 2023-12-31 0000821026 us-gaap:CommodityContractMember ande:CommodityDerivativeLiabilitiesCurrentMember 2023-12-31 0000821026 ande:CommodityDerivativeLiabilitiesNoncurrentMember us-gaap:CommodityContractMember 2023-12-31 0000821026 us-gaap:CommodityContractMember 2023-12-31 0000821026 us-gaap:CommodityContractMember ande:CommodityDerivativeAssetsCurrentMember 2023-03-31 0000821026 ande:CommodityDerivativeAssetsNoncurrentMember us-gaap:CommodityContractMember 2023-03-31 0000821026 us-gaap:CommodityContractMember ande:CommodityDerivativeLiabilitiesCurrentMember 2023-03-31 0000821026 ande:CommodityDerivativeLiabilitiesNoncurrentMember us-gaap:CommodityContractMember 2023-03-31 0000821026 us-gaap:CommodityContractMember 2023-03-31 0000821026 us-gaap:CommodityMember 2024-01-01 2024-03-31 0000821026 us-gaap:CommodityMember 2023-01-01 2023-03-31 0000821026 ande:CornMember ande:NonexchangeTradedMember 2024-03-31 0000821026 ande:SoybeansMember ande:NonexchangeTradedMember 2024-03-31 0000821026 ande:WheatMember ande:NonexchangeTradedMember 2024-03-31 0000821026 ande:NonexchangeTradedMember ande:OatsMember 2024-03-31 0000821026 ande:EthanolMember ande:NonexchangeTradedMember 2024-03-31 0000821026 ande:NonexchangeTradedMember ande:DriedDistillersGrainMember 2024-03-31 0000821026 ande:SoybeanMealMember ande:NonexchangeTradedMember 2024-03-31 0000821026 ande:OtherCommodityMember ande:NonexchangeTradedMember 2024-03-31 0000821026 ande:NonexchangeTradedMember 2024-03-31 0000821026 ande:CornMember us-gaap:ExchangeTradedMember 2024-03-31 0000821026 ande:SoybeansMember us-gaap:ExchangeTradedMember 2024-03-31 0000821026 ande:WheatMember us-gaap:ExchangeTradedMember 2024-03-31 0000821026 us-gaap:ExchangeTradedMember ande:OatsMember 2024-03-31 0000821026 ande:EthanolMember us-gaap:ExchangeTradedMember 2024-03-31 0000821026 us-gaap:PublicUtilitiesInventoryPropaneMember us-gaap:ExchangeTradedMember 2024-03-31 0000821026 ande:OtherCommodityMember us-gaap:ExchangeTradedMember 2024-03-31 0000821026 us-gaap:ExchangeTradedMember 2024-03-31 0000821026 ande:CornMember ande:NonexchangeTradedMember 2023-12-31 0000821026 ande:SoybeansMember ande:NonexchangeTradedMember 2023-12-31 0000821026 ande:WheatMember ande:NonexchangeTradedMember 2023-12-31 0000821026 ande:NonexchangeTradedMember ande:OatsMember 2023-12-31 0000821026 ande:EthanolMember ande:NonexchangeTradedMember 2023-12-31 0000821026 ande:NonexchangeTradedMember ande:DriedDistillersGrainMember 2023-12-31 0000821026 ande:SoybeanMealMember ande:NonexchangeTradedMember 2023-12-31 0000821026 ande:OtherCommodityMember ande:NonexchangeTradedMember 2023-12-31 0000821026 ande:NonexchangeTradedMember 2023-12-31 0000821026 ande:CornMember us-gaap:ExchangeTradedMember 2023-12-31 0000821026 ande:SoybeansMember us-gaap:ExchangeTradedMember 2023-12-31 0000821026 ande:WheatMember us-gaap:ExchangeTradedMember 2023-12-31 0000821026 us-gaap:ExchangeTradedMember ande:OatsMember 2023-12-31 0000821026 ande:EthanolMember us-gaap:ExchangeTradedMember 2023-12-31 0000821026 us-gaap:PublicUtilitiesInventoryPropaneMember us-gaap:ExchangeTradedMember 2023-12-31 0000821026 ande:OtherCommodityMember us-gaap:ExchangeTradedMember 2023-12-31 0000821026 us-gaap:ExchangeTradedMember 2023-12-31 0000821026 ande:CornMember ande:NonexchangeTradedMember 2023-03-31 0000821026 ande:SoybeansMember ande:NonexchangeTradedMember 2023-03-31 0000821026 ande:WheatMember ande:NonexchangeTradedMember 2023-03-31 0000821026 ande:NonexchangeTradedMember ande:OatsMember 2023-03-31 0000821026 ande:EthanolMember ande:NonexchangeTradedMember 2023-03-31 0000821026 ande:NonexchangeTradedMember ande:DriedDistillersGrainMember 2023-03-31 0000821026 ande:SoybeanMealMember ande:NonexchangeTradedMember 2023-03-31 0000821026 ande:OtherCommodityMember ande:NonexchangeTradedMember 2023-03-31 0000821026 ande:NonexchangeTradedMember 2023-03-31 0000821026 ande:CornMember us-gaap:ExchangeTradedMember 2023-03-31 0000821026 ande:SoybeansMember us-gaap:ExchangeTradedMember 2023-03-31 0000821026 ande:WheatMember us-gaap:ExchangeTradedMember 2023-03-31 0000821026 us-gaap:ExchangeTradedMember ande:OatsMember 2023-03-31 0000821026 ande:EthanolMember us-gaap:ExchangeTradedMember 2023-03-31 0000821026 us-gaap:PublicUtilitiesInventoryPropaneMember us-gaap:ExchangeTradedMember 2023-03-31 0000821026 ande:OtherCommodityMember us-gaap:ExchangeTradedMember 2023-03-31 0000821026 us-gaap:ExchangeTradedMember 2023-03-31 0000821026 us-gaap:NondesignatedMember us-gaap:ForeignExchangeContractMember 2024-03-31 0000821026 us-gaap:NondesignatedMember us-gaap:ForeignExchangeContractMember 2023-12-31 0000821026 us-gaap:NondesignatedMember us-gaap:ForeignExchangeContractMember 2023-03-31 0000821026 us-gaap:OtherCurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-31 0000821026 us-gaap:OtherCurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2023-12-31 0000821026 us-gaap:OtherCurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2023-03-31 0000821026 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-31 0000821026 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2023-12-31 0000821026 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2023-03-31 0000821026 us-gaap:OtherComprehensiveIncomeMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-01-01 2024-03-31 0000821026 us-gaap:OtherComprehensiveIncomeMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2023-01-01 2023-03-31 0000821026 us-gaap:InterestExpenseMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-01-01 2024-03-31 0000821026 us-gaap:InterestExpenseMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2023-01-01 2023-03-31 0000821026 us-gaap:OtherNonoperatingIncomeExpenseMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-01-01 2024-03-31 0000821026 us-gaap:OtherNonoperatingIncomeExpenseMember us-gaap:InterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2023-01-01 2023-03-31 0000821026 us-gaap:LongMember ande:InterestRateSwapNineMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-31 0000821026 us-gaap:LongMember ande:InterestRateSwapTenMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-31 0000821026 ande:InterestRateSwapElevenMember us-gaap:LongMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-31 0000821026 ande:InterestRateSwapFourteenMember us-gaap:LongMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-31 0000821026 ande:InterestRateSwapFourteenMember us-gaap:NondesignatedMember us-gaap:LongMember srt:MinimumMember 2024-03-31 0000821026 srt:MaximumMember ande:InterestRateSwapFourteenMember us-gaap:NondesignatedMember us-gaap:LongMember 2024-03-31 0000821026 ande:InterestRateSwapFifteenMember us-gaap:LongMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-31 0000821026 ande:InterestRateSwapFifteenMember us-gaap:NondesignatedMember us-gaap:LongMember srt:MinimumMember 2024-03-31 0000821026 srt:MaximumMember ande:InterestRateSwapFifteenMember us-gaap:NondesignatedMember us-gaap:LongMember 2024-03-31 0000821026 ande:InterestRateSwap20222025Member us-gaap:LongMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-31 0000821026 ande:InterestRateSwap20222029Member us-gaap:LongMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-31 0000821026 us-gaap:LongMember us-gaap:DesignatedAsHedgingInstrumentMember ande:InterestRateSwap20222029TwoMember 2024-03-31 0000821026 ande:InterestRateSwap20232025Member us-gaap:LongMember us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-31 0000821026 us-gaap:LongMember ande:InterestRateSwap20232031Member us-gaap:DesignatedAsHedgingInstrumentMember 2024-03-31 0000821026 us-gaap:AccountingStandardsUpdate201409Member 2024-01-01 2024-03-31 0000821026 us-gaap:AccountingStandardsUpdate201409Member 2023-01-01 2023-03-31 0000821026 us-gaap:AccountingStandardsUpdate201712Member 2024-01-01 2024-03-31 0000821026 us-gaap:AccountingStandardsUpdate201712Member 2023-01-01 2023-03-31 0000821026 ande:SpecialtyNutrientsMember ande:TradeMember 2024-01-01 2024-03-31 0000821026 ande:SpecialtyNutrientsMember ande:EthanolMember 2024-01-01 2024-03-31 0000821026 ande:SpecialtyNutrientsMember ande:PlantNutrientMember 2024-01-01 2024-03-31 0000821026 ande:SpecialtyNutrientsMember 2024-01-01 2024-03-31 0000821026 ande:TradeMember ande:BaseNutrientsMember 2024-01-01 2024-03-31 0000821026 ande:BaseNutrientsMember ande:EthanolMember 2024-01-01 2024-03-31 0000821026 ande:PlantNutrientMember ande:BaseNutrientsMember 2024-01-01 2024-03-31 0000821026 ande:BaseNutrientsMember 2024-01-01 2024-03-31 0000821026 ande:ProductsandCoproductsMember ande:TradeMember 2024-01-01 2024-03-31 0000821026 ande:ProductsandCoproductsMember ande:EthanolMember 2024-01-01 2024-03-31 0000821026 ande:PlantNutrientMember ande:ProductsandCoproductsMember 2024-01-01 2024-03-31 0000821026 ande:ProductsandCoproductsMember 2024-01-01 2024-03-31 0000821026 ande:FracSandandPropaneMember ande:TradeMember 2024-01-01 2024-03-31 0000821026 ande:FracSandandPropaneMember ande:EthanolMember 2024-01-01 2024-03-31 0000821026 ande:PlantNutrientMember ande:FracSandandPropaneMember 2024-01-01 2024-03-31 0000821026 ande:FracSandandPropaneMember 2024-01-01 2024-03-31 0000821026 ande:OtherProductsMember ande:TradeMember 2024-01-01 2024-03-31 0000821026 ande:OtherProductsMember ande:EthanolMember 2024-01-01 2024-03-31 0000821026 ande:OtherProductsMember ande:PlantNutrientMember 2024-01-01 2024-03-31 0000821026 ande:OtherProductsMember 2024-01-01 2024-03-31 0000821026 ande:TradeMember 2024-01-01 2024-03-31 0000821026 ande:EthanolMember 2024-01-01 2024-03-31 0000821026 ande:PlantNutrientMember 2024-01-01 2024-03-31 0000821026 ande:SpecialtyNutrientsMember ande:TradeMember 2023-01-01 2023-03-31 0000821026 ande:SpecialtyNutrientsMember ande:EthanolMember 2023-01-01 2023-03-31 0000821026 ande:SpecialtyNutrientsMember ande:PlantNutrientMember 2023-01-01 2023-03-31 0000821026 ande:SpecialtyNutrientsMember 2023-01-01 2023-03-31 0000821026 ande:TradeMember ande:BaseNutrientsMember 2023-01-01 2023-03-31 0000821026 ande:BaseNutrientsMember ande:EthanolMember 2023-01-01 2023-03-31 0000821026 ande:PlantNutrientMember ande:BaseNutrientsMember 2023-01-01 2023-03-31 0000821026 ande:BaseNutrientsMember 2023-01-01 2023-03-31 0000821026 ande:ProductsandCoproductsMember ande:TradeMember 2023-01-01 2023-03-31 0000821026 ande:ProductsandCoproductsMember ande:EthanolMember 2023-01-01 2023-03-31 0000821026 ande:PlantNutrientMember ande:ProductsandCoproductsMember 2023-01-01 2023-03-31 0000821026 ande:ProductsandCoproductsMember 2023-01-01 2023-03-31 0000821026 ande:FracSandandPropaneMember ande:TradeMember 2023-01-01 2023-03-31 0000821026 ande:FracSandandPropaneMember ande:EthanolMember 2023-01-01 2023-03-31 0000821026 ande:PlantNutrientMember ande:FracSandandPropaneMember 2023-01-01 2023-03-31 0000821026 ande:FracSandandPropaneMember 2023-01-01 2023-03-31 0000821026 ande:OtherProductsMember ande:TradeMember 2023-01-01 2023-03-31 0000821026 ande:OtherProductsMember ande:EthanolMember 2023-01-01 2023-03-31 0000821026 ande:OtherProductsMember ande:PlantNutrientMember 2023-01-01 2023-03-31 0000821026 ande:OtherProductsMember 2023-01-01 2023-03-31 0000821026 ande:TradeMember 2023-01-01 2023-03-31 0000821026 ande:EthanolMember 2023-01-01 2023-03-31 0000821026 ande:PlantNutrientMember 2023-01-01 2023-03-31 0000821026 ande:ElementLLCMember 2023-01-01 2023-03-31 0000821026 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2023-12-31 0000821026 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2022-12-31 0000821026 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2024-01-01 2024-03-31 0000821026 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2023-01-01 2023-03-31 0000821026 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2024-03-31 0000821026 us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2023-03-31 0000821026 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2023-12-31 0000821026 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2022-12-31 0000821026 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2024-01-01 2024-03-31 0000821026 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2023-01-01 2023-03-31 0000821026 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2024-03-31 0000821026 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2023-03-31 0000821026 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2023-12-31 0000821026 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2022-12-31 0000821026 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2024-01-01 2024-03-31 0000821026 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2023-01-01 2023-03-31 0000821026 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2024-03-31 0000821026 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember 2023-03-31 0000821026 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2023-12-31 0000821026 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-12-31 0000821026 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2024-01-01 2024-03-31 0000821026 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2023-01-01 2023-03-31 0000821026 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2024-03-31 0000821026 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2023-03-31 0000821026 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2024-03-31 0000821026 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2024-03-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2024-03-31 0000821026 us-gaap:FairValueMeasurementsRecurringMember 2024-03-31 0000821026 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2023-12-31 0000821026 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000821026 us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0000821026 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2023-03-31 0000821026 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2023-03-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2023-03-31 0000821026 us-gaap:FairValueMeasurementsRecurringMember 2023-03-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:ConvertiblePreferredStockMember 2023-12-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:ConvertiblePreferredStockMember 2022-12-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:ConvertiblePreferredStockMember 2024-01-01 2024-03-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:ConvertiblePreferredStockMember 2023-01-01 2023-03-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:ConvertiblePreferredStockMember 2024-03-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:ConvertiblePreferredStockMember 2023-03-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:ConvertiblePreferredStockMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MarketApproachValuationTechniqueMember 2024-03-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:ConvertiblePreferredStockMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MarketApproachValuationTechniqueMember 2023-12-31 0000821026 us-gaap:FairValueInputsLevel3Member us-gaap:ConvertiblePreferredStockMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MarketApproachValuationTechniqueMember 2023-03-31 0000821026 us-gaap:FairValueInputsLevel3Member ande:EthanolPlantAssetsMember ande:ValuationVariousMember us-gaap:FairValueMeasurementsNonrecurringMember 2024-03-31 0000821026 us-gaap:FairValueInputsLevel3Member ande:EthanolPlantAssetsMember ande:ValuationVariousMember us-gaap:FairValueMeasurementsNonrecurringMember 2023-12-31 0000821026 us-gaap:FairValueInputsLevel3Member ande:EthanolPlantAssetsMember ande:ValuationVariousMember us-gaap:FairValueMeasurementsNonrecurringMember 2023-03-31 0000821026 us-gaap:RelatedPartyMember 2024-01-01 2024-03-31 0000821026 us-gaap:RelatedPartyMember 2023-01-01 2023-03-31 0000821026 us-gaap:RelatedPartyMember 2024-03-31 0000821026 us-gaap:RelatedPartyMember 2023-12-31 0000821026 us-gaap:RelatedPartyMember 2023-03-31 0000821026 us-gaap:OperatingSegmentsMember ande:TradeMember 2024-01-01 2024-03-31 0000821026 us-gaap:OperatingSegmentsMember ande:TradeMember 2023-01-01 2023-03-31 0000821026 us-gaap:OperatingSegmentsMember ande:RenewablesMember 2024-01-01 2024-03-31 0000821026 us-gaap:OperatingSegmentsMember ande:RenewablesMember 2023-01-01 2023-03-31 0000821026 ande:PlantNutrientMember us-gaap:OperatingSegmentsMember 2024-01-01 2024-03-31 0000821026 ande:PlantNutrientMember us-gaap:OperatingSegmentsMember 2023-01-01 2023-03-31 0000821026 us-gaap:CorporateNonSegmentMember 2024-01-01 2024-03-31 0000821026 us-gaap:CorporateNonSegmentMember 2023-01-01 2023-03-31 0000821026 ande:ReedPerrineSalesInc.Member us-gaap:SubsequentEventMember 2024-04-30 2024-04-30
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended 03/31/2024

☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .
Commission file number 000-20557

THE ANDERSONS, INC.
(Exact name of the registrant as specified in its charter)

Ohio |  | 34-1562374
(State of incorporation or organization) |  | (I.R.S. Employer Identification No.)
1947 Briarfield Boulevard |  |
Maumee | Ohio |  | 43537
(Address of principal executive offices) |  | (Zip Code)

(419) 893-5050
(Telephone Number)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class: |  | Trading Symbol |  | Name of each exchange on which registered:
Common stock, $0.00 par value, $0.01 stated value |  | ANDE |  | The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer | ý | Accelerated filer | ☐
Non-accelerated filer | ☐ | Smaller reporting company | ☐
|  | Emerging growth company | ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ý
The registrant had 34,049,783 common shares outstanding at April 26, 2024.

Table of Contents
THE ANDERSONS, INC.
INDEX

| Page No.
PART I. FINANCIAL INFORMATION |
Item 1. Financial Statements (Unaudited) |
Condensed Consolidated Statements of Operations – Three months ended March 3 1, 202 4 and 20 23 | 1
Condensed Consolidated Statements of Comprehensive Income (Loss) – Three months ended March 31, 2024 and 2023 | 2
Condensed Consolidated Balance Sheets – March 3 1, 202 4, December 31, 202 3 and March 31, 20 23 | 3
Condensed Consolidated Statements of Cash Flows – Three months ended March 31, 202 4 and 20 23 | 4
Condensed Consolidated Statements of Equity – Three months ended March 3 1, 202 4 and 20 23 | 5
Notes to Condensed Consolidated Financial Statements | 6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 20
Item 3. Quantitative and Qualitative Disclosures about Market Risk | 27
Item 4. Controls and Procedures | 27
PART II. OTHER INFORMATION |
Item 1. Legal Proceedings | 28
Item 1A. Risk Factors | 28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 28
Item 5. Other Information | 28
Item 6. Exhibits | 29

Table of Contents
Part I. Financial Information
Item 1. Financial Statements
The Andersons, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)

|  |  | Three months ended March 31,
|  |  |  |  | 2024 |  | 2023
Sales and merchandising revenues |  |  |  |  | $ | 2,718,217 |  |  | $ | 3,881,238 |
Cost of sales and merchandising revenues |  |  |  |  | 2,589,897 |  |  | 3,733,227 |
Gross profit |  |  |  |  | 128,320 |  |  | 148,011 |
Operating, administrative and general expenses |  |  |  |  | 119,358 |  |  | 117,235 |
Asset impairment |  |  |  |  | — |  |  | 87,156 |
Interest expense, net |  |  |  |  | 6,522 |  |  | 16,625 |
Other income, net |  |  |  |  | 11,528 |  |  | 8,004 |
Income (loss) before income taxes |  |  |  |  | 13,968 |  |  | (65,001) |
Income tax provision (benefit) |  |  |  |  | 1,303 |  |  | (5,884) |
Net income (loss) |  |  |  |  | 12,665 |  |  | (59,117) |
Net income (loss) attributable to noncontrolling interests |  |  |  |  | 7,084 |  |  | (44,367) |
Net income (loss) attributable to The Andersons, Inc. |  |  |  |  | $ | 5,581 |  |  | $ | (14,750) |
Average number of shares outstanding - basic |  |  |  |  | 33,932 |  |  | 33,622 |
Average number of share outstanding - diluted |  |  |  |  | 34,243 |  |  | 33,622 |
Earnings (loss) per share attributable to The Andersons, Inc. common shareholders: |  |  |  |  |  |  |
Basic earnings (loss) per share attributable to The Andersons, Inc. common shareholders |  |  |  |  | $ | 0.16 |  |  | $ | (0.44) |
Diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders |  |  |  |  | $ | 0.16 |  |  | $ | (0.44) |

See Notes to Condensed Consolidated Financial Statements
The Andersons, Inc. | Q1 2024 Form 10-Q | 1

Table of Contents
The Andersons, Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(In thousands)

|  |  | Three months ended March 31,
|  |  |  |  | 2024 |  | 2023
Net income (loss) |  |  |  |  | $ | 12,665 |  |  | $ | (59,117) |
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |
Change in unrecognized actuarial loss and prior service cost |  |  |  |  | (175) |  |  | (188) |
Foreign currency translation adjustments |  |  |  |  | (2,918) |  |  | 767 |
Cash flow hedge activity |  |  |  |  | 3,639 |  |  | (4,796) |
Other comprehensive income (loss) |  |  |  |  | 546 |  |  | (4,217) |
Comprehensive income (loss) |  |  |  |  | 13,211 |  |  | (63,334) |
Comprehensive income (loss) attributable to the noncontrolling interests |  |  |  |  | 7,084 |  |  | (44,367) |
Comprehensive income (loss) attributable to The Andersons, Inc. |  |  |  |  | $ | 6,127 |  |  | $ | (18,967) |

See Notes to Condensed Consolidated Financial Statements
The Andersons, Inc. | Q1 2024 Form 10-Q | 2

Table of Contents
The Andersons, Inc.
Condensed Consolidated Balance Sheets (Unaudited)

(In thousands) | March 31, 2024 |  | December 31, 2023 |  | March 31, 2023
Assets |  |  |  |  |
Current assets: |  |  |  |  |
Cash and cash equivalents | $ | 283,902 |  |  | $ | 643,854 |  |  | $ | 70,853 |
Accounts receivable, net | 701,706 |  |  | 762,549 |  |  | 1,125,071 |
Inventories | 994,543 |  |  | 1,166,700 |  |  | 1,551,101 |
Commodity derivative assets – current | 178,623 |  |  | 178,083 |  |  | 222,036 |
Other current assets | 55,134 |  |  | 55,777 |  |  | 81,407 |
Total current assets | 2,213,908 |  |  | 2,806,963 |  |  | 3,050,468 |
Other assets: |  |  |  |  |
Goodwill | 127,856 |  |  | 127,856 |  |  | 129,342 |
Other intangible assets, net | 80,527 |  |  | 85,579 |  |  | 95,134 |
Right of use assets, net | 52,541 |  |  | 54,234 |  |  | 59,209 |
Other assets, net | 97,128 |  |  | 87,010 |  |  | 89,174 |
Total other assets | 358,052 |  |  | 354,679 |  |  | 372,859 |
Property, plant and equipment, net | 689,113 |  |  | 693,365 |  |  | 678,717 |
Total assets | $ | 3,261,073 |  |  | $ | 3,855,007 |  |  | $ | 4,102,044 |
Liabilities and equity |  |  |  |  |
Current liabilities: |  |  |  |  |
Short-term debt | $ | 10,148 |  |  | $ | 43,106 |  |  | $ | 638,210 |
Trade and other payables | 625,836 |  |  | 1,055,473 |  |  | 768,872 |
Customer prepayments and deferred revenue | 174,651 |  |  | 187,054 |  |  | 309,546 |
Commodity derivative liabilities – current | 67,079 |  |  | 90,849 |  |  | 107,983 |
Current maturities of long-term debt | 27,617 |  |  | 27,561 |  |  | 85,567 |
Accrued expenses and other current liabilities | 177,953 |  |  | 232,288 |  |  | 202,133 |
Total current liabilities | 1,083,284 |  |  | 1,636,331 |  |  | 2,112,311 |
Long-term lease liabilities | 31,223 |  |  | 31,659 |  |  | 35,727 |
Long-term debt, less current maturities | 556,174 |  |  | 562,960 |  |  | 486,892 |
Deferred income taxes | 59,149 |  |  | 58,581 |  |  | 54,391 |
Other long-term liabilities | 55,593 |  |  | 49,089 |  |  | 66,311 |
Total liabilities | 1,785,423 |  |  | 2,338,620 |  |  | 2,755,632 |
Commitments and contingencies (Note 12) |  |  |  |  |
Shareholders’ equity: |  |  |  |  |
Common shares, without par value (63,000 shares authorized and 34,064 shares issued for all periods presented) | 142 |  |  | 142 |  |  | 142 |
Preferred shares, without par value (1,000 shares authorized; none issued) | — |  |  | — |  |  | — |
Additional paid-in-capital | 375,155 |  |  | 387,210 |  |  | 377,768 |
Treasury shares, at cost (14, 270 and 289 shares at 3/31/2024, 12/31/2023 and 3/31/2023, respectively) | (631) |  |  | (10,261) |  |  | (11,006) |
Accumulated other comprehensive income | 23,411 |  |  | 22,865 |  |  | 16,267 |
Retained earnings | 881,911 |  |  | 882,943 |  |  | 786,420 |
Total shareholders’ equity of The Andersons, Inc. | 1,279,988 |  |  | 1,282,899 |  |  | 1,169,591 |
Noncontrolling interests | 195,662 |  |  | 233,488 |  |  | 176,821 |
Total equity | 1,475,650 |  |  | 1,516,387 |  |  | 1,346,412 |
Total liabilities and equity | $ | 3,261,073 |  |  | $ | 3,855,007 |  |  | $ | 4,102,044 |

See Notes to Condensed Consolidated Financial Statements
The Andersons, Inc. | Q1 2024 Form 10-Q | 3

Table of Contents
The Andersons, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

| Three months ended March 31,
| 2024 |  | 2023
Operating Activities |  |  |
Net income (loss) | $ | 12,665 |  |  | $ | (59,117) |
Adjustments to reconcile net income (loss) to cash used in operating activities: |  |  |
Depreciation and amortization | 30,949 |  |  | 32,220 |
Asset impairment | — |  |  | 87,156 |
Other | 4,795 |  |  | (2,230) |
Changes in operating assets and liabilities: |  |  |
Accounts receivable | 57,725 |  |  | 125,113 |
Inventories | 169,083 |  |  | 178,010 |
Commodity derivatives | (28,498) |  |  | 83,148 |
Other current and non-current assets | 1,923 |  |  | (17,543) |
Payables and other current and non-current liabilities | (488,269) |  |  | (760,292) |
Net cash used in operating activities | (239,627) |  |  | (333,535) |
Investing Activities |  |  |
Purchases of property, plant and equipment and capitalized software | (26,775) |  |  | (25,470) |
Proceeds from sale of Rail assets | — |  |  | 2,871 |
Other | 4,723 |  |  | 2,792 |
Net cash used in investing activities | (22,052) |  |  | (19,807) |
Financing Activities |  |  |
Net (payments) receipts under short-term lines of credit | (31,913) |  |  | 363,619 |
Payments of long-term debt | (6,870) |  |  | (30,251) |
Distributions to noncontrolling interest owner | (44,910) |  |  | (9,980) |
Dividends paid | (6,516) |  |  | (6,279) |
Value of shares withheld for taxes | (8,071) |  |  | (6,616) |
Other | — |  |  | (1,676) |
Net cash (used in) provided by financing activities | (98,280) |  |  | 308,817 |
Effect of exchange rates on cash and cash equivalents | 7 |  |  | 109 |
Decrease in cash and cash equivalents | (359,952) |  |  | (44,416) |
Cash and cash equivalents at beginning of period | 643,854 |  |  | 115,269 |
Cash and cash equivalents at end of period | $ | 283,902 |  |  | $ | 70,853 |

See Notes to Condensed Consolidated Financial Statements
The Andersons, Inc. | Q1 2024 Form 10-Q | 4

Table of Contents
The Andersons, Inc.
Condensed Consolidated Statements of Equity (Unaudited)
(In thousands, except per share data)

| Three Months Ended
| Common Shares |  | Additional Paid-in Capital |  | Treasury Shares |  | Accumulated Other Comprehensive Income |  | Retained Earnings |  | Noncontrolling Interests |  | Total
Balance at December 31, 2022 | $ | 142 |  |  | $ | 385,248 |  |  | $ | (15,043) |  |  | $ | 20,484 |  |  | $ | 807,770 |  |  | $ | 231,168 |  |  | $ | 1,429,769 |
Net loss |  |  |  |  |  |  |  |  | (14,750) |  |  | (44,367) |  |  | (59,117) |
Other comprehensive loss |  |  |  |  |  |  | (1,884) |  |  |  |  |  |  | (1,884) |
Amounts reclassified from accumulated other comprehensive income |  |  |  |  |  |  | (2,333) |  |  |  |  |  |  | (2,333) |
Distributions to noncontrolling interests |  |  |  |  |  |  |  |  |  |  | (9,980) |  |  | (9,980) |
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $0 (201 shares) |  |  | (8,087) |  |  | 5,543 |  |  |  |  |  |  |  |  | (2,544) |
Purchase of treasury shares (49 shares) |  |  |  |  | (1,671) |  |  |  |  |  |  |  |  | (1,671) |
Dividends declared ($0.185 per common share) |  |  |  |  |  |  |  |  | (6,240) |  |  |  |  | (6,240) |
Restricted share award dividend equivalents |  |  | 607 |  |  | 165 |  |  |  |  | (360) |  |  |  |  | 412 |
Balance at March 31, 2023 | $ | 142 |  |  | $ | 377,768 |  |  | $ | (11,006) |  |  | $ | 16,267 |  |  | $ | 786,420 |  |  | $ | 176,821 |  |  | $ | 1,346,412 |
Balance at December 31, 2023 | $ | 142 |  |  | $ | 387,210 |  |  | $ | (10,261) |  |  | $ | 22,865 |  |  | $ | 882,943 |  |  | $ | 233,488 |  |  | $ | 1,516,387 |
Net income |  |  |  |  |  |  |  |  | 5,581 |  |  | 7,084 |  |  | 12,665 |
Other comprehensive income |  |  |  |  |  |  | 4,727 |  |  |  |  |  |  | 4,727 |
Amounts reclassified from accumulated other comprehensive income |  |  |  |  |  |  | (4,181) |  |  |  |  |  |  | (4,181) |
Distributions to noncontrolling interests |  |  |  |  |  |  |  |  |  |  | (44,910) |  |  | (44,910) |
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $0 (256 shares) |  |  | (12,749) |  |  | 9,569 |  |  |  |  |  |  |  |  | (3,180) |
Dividends declared ($0.190 per common share) |  |  |  |  |  |  |  |  | (6,470) |  |  |  |  | (6,470) |
Restricted share award dividend equivalents |  |  | 694 |  |  | 61 |  |  |  |  | (143) |  |  |  |  | 612 |
Balance at March 31, 2024 | $ | 142 |  |  | $ | 375,155 |  |  | $ | (631) |  |  | $ | 23,411 |  |  | $ | 881,911 |  |  | $ | 195,662 |  |  | $ | 1,475,650 |

See Notes to Condensed Consolidated Financial Statements
The Andersons, Inc. | Q1 2024 Form 10-Q | 5

Table of Contents
The Andersons, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
1. Basis of Presentation and Recently Issued Accounting Standards
These Condensed Consolidated Financial Statements include the accounts of The Andersons, Inc. and its wholly owned and controlled subsidiaries (the “Company”). Controlled subsidiaries include majority-owned subsidiaries and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. ELEMENT, LLC ("ELEMENT"), formerly a joint venture ethanol plant within the Renewables segment, was deconsolidated from the Company's Condensed Consolidated Financial Statements in the second quarter of 2023. The Andersons Marathon Holdings LLC ("TAMH") is the Company’s only remaining VIE. The portion of these entities that is not owned by the Company is presented as noncontrolling interests. All 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 and recurring items considered necessary for the fair presentation of the results of operations, financial position, and cash flows for the periods indicated have been made. The results in these Condensed Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. An unaudited Condensed Consolidated Balance Sheet as of March 31, 2023 has been included as the Company operates in several seasonal industries.
The Condensed Consolidated Balance Sheet data at December 31, 2023 was derived from the audited Consolidated Financial Statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. 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, 2023 (the “2023 Form 10-K”).
Accounting Pronouncements Not Yet Adopted
In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), which requires an enhanced disclosure of significant segment expenses on an annual and interim basis. This guidance will be effective for the annual periods beginning with the year ended December 31, 2024, and for interim periods beginning January 1, 2025. Early adoption is permitted. Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements. We do not expect the adoption of this guidance to have a material impact on the Consolidated Financial Statements.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning with the year ended December 31, 2025. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. We do not expect the adoption of this guidance to have a material impact on the Consolidated Financial Statements.
The Andersons, Inc. | Q1 2024 Form 10-Q | 6

Table of Contents
2. Inventories
Major classes of inventories are presented below. Readily Marketable Inventories ("RMI") are agricultural commodity inventories such as corn, soybeans, wheat, and ethanol co-products, among others, carried at net realizable value which approximates fair value based on their commodity characteristics, widely available market information, and pricing mechanisms. The net realizable value of RMI is calculated as the fair value (spot price of the commodity in an exchange), less cost of disposal and transportation based on the local market. All other inventories are held at lower of cost or net realizable value.

(in thousands) | March 31, 2024 |  | December 31, 2023 |  | March 31, 2023
Grain and other agricultural products (a) | $ | 669,373 |  |  | $ | 886,725 |  |  | $ | 1,112,155 |
Energy inventories (a) | 14,454 |  |  | 21,705 |  |  | 17,641 |
Ethanol and co-products (a) | 104,878 |  |  | 104,349 |  |  | 147,275 |
Plant nutrients and cob products | 205,838 |  |  | 153,921 |  |  | 274,030 |
Total inventories | $ | 994,543 |  |  | $ | 1,166,700 |  |  | $ | 1,551,101 |

(a) Includes RMI of $635.5 million, $862.5 million, and $1,085.7 million at March 31, 2024, December 31, 2023, and March 31, 2023, respectively.
3. Property, Plant and Equipment
The components of Property, plant and equipment, net are as follows:

(in thousands) | March 31, 2024 |  | December 31, 2023 |  | March 31, 2023
Land | $ | 30,626 |  |  | $ | 30,912 |  |  | $ | 38,000 |
Land improvements and leasehold improvements | 82,541 |  |  | 82,438 |  |  | 91,503 |
Buildings and storage facilities | 366,790 |  |  | 365,744 |  |  | 362,451 |
Machinery and equipment | 959,920 |  |  | 951,544 |  |  | 917,269 |
Construction in progress | 45,327 |  |  | 36,541 |  |  | 48,158 |
| 1,485,204 |  |  | 1,467,179 |  |  | 1,457,381 |
Less: accumulated depreciation | 796,091 |  |  | 773,814 |  |  | 778,664 |
Property, plant and equipment, net | $ | 689,113 |  |  | $ | 693,365 |  |  | $ | 678,717 |

Depreciation expense on property, plant, and equipment was $24.7 million and $26.2 million for three months ended March 31, 2024, and 2023, respectively.
In the first quarter of 2023, the Company recorded a $87.2 million impairment charge related to ELEMENT. The plant faced operational and market-based challenges which were exacerbated by a shift in the California Low Carbon Fuel Standard credit markets and high western corn basis. At the time of the impairment, the Company owned 51% of ELEMENT and it was a consolidated entity, as such, 49% of the impairment charge was represented in Net income (loss) attributable to noncontrolling interests in the Company's Condensed Consolidated Statements of Operations.
The Andersons, Inc. | Q1 2024 Form 10-Q | 7

Table of Contents
4. Debt
The total borrowing capacity of the Company's lines of credit at March 31, 2024, was $1,859.1 million, of which, the Company had a total of $1,845.6 million available for borrowing. The Company's borrowing capacity is reduced by a combination of outstanding borrowings and letters of credit.
As of March 31, 2024, December 31, 2023 and March 31, 2023, the estimated fair value of long-term debt, including the current portion, was $575.2 million, $585.1 million and $569.0 million, respectively. The Company estimates the fair value of its long-term debt based upon the Company’s credit standing and current interest rates offered to the Company on similar bonds and rates currently available to the Company for long-term borrowings with similar terms and remaining maturities.
As part of the Company's ongoing covenant monitoring process in the prior year, the Company determined that ELEMENT was out of compliance with its working capital and owner's equity ratio covenants as of March 31, 2023. In addition, ELEMENT did not make its required February 2023 debt payment and subsequently received a default notice from the lender on February 17, 2023. As such, the $62.8 million of non-recourse debt associated with ELEMENT was classified in Current maturities of long-term debt as of March 31, 2023. On April 18, 2023, ELEMENT was placed into receivership and the related debt associated with ELEMENT was deconsolidated from the Company's Condensed Consolidated Financial Statements.
The Company is in compliance with all financial covenants as of March 31, 2024.
5. Derivatives
The Company’s operating results are affected by changes to commodity prices. The Trade and Renewables businesses have 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 Andersons, Inc. | Q1 2024 Form 10-Q | 8

Table of Contents
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, 2024 |  | December 31, 2023 |  | March 31, 2023
Cash collateral paid | $ | 33,199 |  |  | $ | 24,439 |  |  | $ | 9,075 |
Fair value of derivatives | 15,551 |  |  | 24,237 |  |  | 23,040 |
Net derivative asset position | $ | 48,750 |  |  | $ | 48,676 |  |  | $ | 32,115 |

The following table presents, on a gross basis, current and non-current commodity derivative assets and liabilities:

| March 31, 2024
(in thousands) | Commodity Derivative Assets - Current |  | Commodity Derivative Assets - Noncurrent |  | Commodity Derivative Liabilities - Current |  | Commodity Derivative Liabilities - Noncurrent |  | Total
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 paid | 31,510 |  |  | — |  |  | 1,689 |  |  | — |  |  | 33,199 |
Balance sheet line item totals | $ | 178,623 |  |  | $ | 9,599 |  |  | $ | (67,079) |  |  | $ | (4,794) |  |  | $ | 116,349 |

| December 31, 2023
(in thousands) | Commodity Derivative Assets - Current |  | Commodity Derivative Assets - Noncurrent |  | Commodity Derivative Liabilities - Current |  | Commodity Derivative Liabilities - Noncurrent |  | Total
Commodity derivative assets | $ | 201,542 |  |  | $ | 1,496 |  |  | $ | 7,868 |  |  | $ | 13 |  |  | $ | 210,919 |
Commodity derivative liabilities | (47,898) |  |  | (64) |  |  | (98,717) |  |  | (431) |  |  | (147,110) |
Cash collateral paid | 24,439 |  |  | — |  |  | — |  |  | — |  |  | 24,439 |
Balance sheet line item totals | $ | 178,083 |  |  | $ | 1,432 |  |  | $ | (90,849) |  |  | $ | (418) |  |  | $ | 88,248 |

| March 31, 2023
(in thousands) | Commodity Derivative Assets - Current |  | Commodity Derivative Assets - Noncurrent |  | Commodity Derivative Liabilities - Current |  | Commodity Derivative Liabilities - Noncurrent |  | Total
Commodity derivative assets | $ | 284,879 |  |  | $ | 4,175 |  |  | $ | 13,431 |  |  | $ | 74 |  |  | $ | 302,559 |
Commodity derivative liabilities | (71,918) |  |  | (1,024) |  |  | (121,414) |  |  | (2,384) |  |  | (196,740) |
Cash collateral paid | 9,075 |  |  | — |  |  | — |  |  | — |  |  | 9,075 |
Balance sheet line item totals | $ | 222,036 |  |  | $ | 3,151 |  |  | $ | (107,983) |  |  | $ | (2,310) |  |  | $ | 114,894 |

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) | 2024 |  | 2023 |  |  |  |
Gains (losses) on commodity derivatives included in Cost of sales and merchandising revenues | $ | 19,342 |  |  | $ | (27,568) |  |  |  |  |

The Andersons, Inc. | Q1 2024 Form 10-Q | 9

Table of Contents
The Company's volumes of commodity derivative contracts outstanding (on a gross basis) are as follows:

| March 31, 2024
(in thousands) | Number of Bushels |  | Number of Gallons |  |  |  | Number of Tons
Non-exchange traded: |  |  |  |  |  |  |
Corn | 553,569 |  |  | — |  |  |  |  | — |
Soybeans | 28,902 |  |  | — |  |  |  |  | — |
Wheat | 90,195 |  |  | — |  |  |  |  | — |
Oats | 32,437 |  |  | — |  |  |  |  | — |
Ethanol | — |  |  | 198,453 |  |  |  |  | — |
Dried distillers grain | — |  |  | — |  |  |  |  | 703 |
Soybean meal | — |  |  | — |  |  |  |  | 450 |
Other | 6,742 |  |  | 37,193 |  |  |  |  | 2,279 |
Subtotal | 711,845 |  |  | 235,646 |  |  |  |  | 3,432 |
Exchange traded: |  |  |  |  |  |  |
Corn | 174,300 |  |  | — |  |  |  |  | — |
Soybeans | 36,115 |  |  | — |  |  |  |  | — |
Wheat | 106,551 |  |  | — |  |  |  |  | — |
Oats | 300 |  |  | — |  |  |  |  | — |
Ethanol | — |  |  | 58,944 |  |  |  |  | — |
Propane | — |  |  | 104,580 |  |  |  |  | — |
Other | — |  |  | 1,302 |  |  |  |  | 505 |
Subtotal | 317,266 |  |  | 164,826 |  |  |  |  | 505 |
Total | 1,029,111 |  |  | 400,472 |  |  |  |  | 3,937 |

| December 31, 2023
(in thousands) | Number of Bushels |  | Number of Gallons |  |  |  | Number of Tons |  |
Non-exchange traded: |  |  |  |  |  |  |  |  |
Corn | 519,825 |  |  | — |  |  |  |  | — |  |  |
Soybeans | 41,848 |  |  | — |  |  |  |  | — |  |  |
Wheat | 66,953 |  |  | — |  |  |  |  | — |  |  |
Oats | 15,355 |  |  | — |  |  |  |  | — |  |  |
Ethanol | — |  |  | 206,986 |  |  |  |  | — |  |  |
Dried distillers grain | — |  |  | — |  |  |  |  | 740 |  |  |
Soybean meal | — |  |  | — |  |  |  |  | 546 |  |  |
Other | 6,847 |  |  | 37,153 |  |  |  |  | 1,882 |  |  |
Subtotal | 650,828 |  |  | 244,139 |  |  |  |  | 3,168 |  |  |
Exchange traded: |  |  |  |  |  |  |  |  |
Corn | 160,795 |  |  | — |  |  |  |  | — |  |  |
Soybeans | 34,250 |  |  | — |  |  |  |  | — |  |  |
Wheat | 64,778 |  |  | — |  |  |  |  | — |  |  |
Oats | 375 |  |  | — |  |  |  |  | — |  |  |
Ethanol | — |  |  | 97,272 |  |  |  |  | — |  |  |
Propane | — |  |  | 74,550 |  |  |  |  | — |  |  |
Other | — |  |  | 420 |  |  |  |  | 825 |  |  |
Subtotal | 260,198 |  |  | 172,242 |  |  |  |  | 825 |  |  |
Total | 911,026 |  |  | 416,381 |  |  |  |  | 3,993 |  |  |

The Andersons, Inc. | Q1 2024 Form 10-Q | 10

Table of Contents

| March 31, 2023
(in thousands) | Number of Bushels |  | Number of Gallons |  |  |  | Number of Tons
Non-exchange traded: |  |  |  |  |  |  |
Corn | 572,079 |  |  | — |  |  |  |  | — |
Soybeans | 50,184 |  |  | — |  |  |  |  | — |
Wheat | 101,663 |  |  | — |  |  |  |  | — |
Oats | 31,658 |  |  | — |  |  |  |  | — |
Ethanol | — |  |  | 200,591 |  |  |  |  | — |
Dried distillers grain | — |  |  | — |  |  |  |  | 399 |
Soybean meal | — |  |  | — |  |  |  |  | 367 |
Other | 10,237 |  |  | 44,120 |  |  |  |  | 1,966 |
Subtotal | 765,821 |  |  | 244,711 |  |  |  |  | 2,732 |
Exchange traded: |  |  |  |  |  |  |
Corn | 184,766 |  |  | — |  |  |  |  | — |
Soybeans | 76,365 |  |  | — |  |  |  |  | — |
Wheat | 83,618 |  |  | — |  |  |  |  | — |
Oats | 1,125 |  |  | — |  |  |  |  | — |
Ethanol | — |  |  | 69,972 |  |  |  |  | — |
Propane | — |  |  | 45,402 |  |  |  |  | — |
Other | — |  |  | 1,134 |  |  |  |  | 551 |
Subtotal | 345,874 |  |  | 116,508 |  |  |  |  | 551 |
Total | 1,111,695 |  |  | 361,219 |  |  |  |  | 3,283 |

Interest Rate and Other 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 of variable amounts from 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 (loss) 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 other derivatives:

(in thousands) | March 31, 2024 |  | December 31, 2023 |  | March 31, 2023
Derivatives not designated as hedging instruments |  |  |  |  |
Foreign currency contracts included in Other current assets (liabilities) | $ | (793) |  |  | $ | 907 |  |  | $ | 4,260 |
Derivatives designated as hedging instruments |  |  |  |  |
Interest rate contracts included in Other current assets | $ | 10,281 |  |  | $ | 9,968 |  |  | $ | 8,265 |
Interest rate contracts included in Other assets | 22,579 |  |  | 18,041 |  |  | 16,779 |

The Andersons, Inc. | Q1 2024 Form 10-Q | 11

Table of Contents
The recording of gains and losses on other derivatives and the financial statement line in which they are located are as follows:

| Three months ended March 31, |  |
(in thousands) | 2024 |  | 2023 |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |  |
Interest rate derivative gains (losses) included in Other comprehensive income (loss) | $ | 4,843 |  |  | $ | (6,407) |  |  |  |  |
Interest rate derivative gains included in Interest expense, net | 3,385 |  |  | 2,105 |  |  |  |  |
Interest rate derivative gains included in Other income, net | 568 |  |  | — |  |  |  |  |

Outstanding interest rate derivatives, as of March 31, 2024, are as follows:

Interest Rate Hedging Instrument |  | Year Entered |  | Year of Maturity |  | Notional Amount (in millions) |  | Description |  | Interest Rate
Swap |  | 2019 |  | 2025 |  | $ | 92.2 |  |  | Interest rate component of debt - accounted for as a hedge |  | 2.3%
Swap |  | 2019 |  | 2025 |  | $ | 46.1 |  |  | Interest rate component of debt - accounted for as a hedge |  | 2.4%
Swap |  | 2019 |  | 2025 |  | $ | 46.1 |  |  | Interest rate component of debt - accounted for as a hedge |  | 2.4%
Swap |  | 2020 |  | 2030 |  | $ | 50.0 |  |  | Interest rate component of debt - accounted for as a hedge |  | 0.0% to 0.8%
Swap |  | 2020 |  | 2030 |  | $ | 50.0 |  |  | Interest rate component of debt - accounted for as a hedge |  | 0.0% to 0.8%
Swap |  | 2022 |  | 2025 |  | $ | 20.0 |  |  | Interest rate component of debt - accounted for as a hedge |  | 2.6%
Swap |  | 2022 |  | 2029 |  | $ | 100.0 |  |  | Interest rate component of debt - accounted for as a hedge |  | 2.0%
Swap |  | 2022 |  | 2029 |  | $ | 50.0 |  |  | Interest rate component of debt - accounted for as a hedge |  | 2.4%
Swap |  | 2023 |  | 2025 |  | $ | 50.0 |  |  | Interest rate component of debt - accounted for as a hedge |  | 3.7%
Swap |  | 2023 |  | 2031 |  | $ | 50.0 |  |  | Interest rate component of debt - accounted for as a hedge |  | 2.9%

6. Revenue
Many of the Company’s sales and merchandising revenues are generated from contracts that are outside the scope of ASC 606, Revenue from Contracts with Customers. Specifically, many of the Company's Trade and Renewables sales contracts are derivatives under ASC 815, Derivatives and Hedging. The breakdown of revenues between ASC 606 and ASC 815 is as follows:

|  |  | Three months ended March 31,
(in thousands) |  |  |  |  | 2024 |  | 2023
Revenues under ASC 606 |  |  |  |  | $ | 648,843 |  |  | $ | 738,978 |
Revenues under ASC 815 |  |  |  |  | 2,069,374 |  |  | 3,142,260 |
Total revenues |  |  |  |  | $ | 2,718,217 |  |  | $ | 3,881,238 |

The remainder of this note applies only to those revenues that are accounted for under ASC 606.
The Andersons, Inc. | Q1 2024 Form 10-Q | 12

Table of Contents
Disaggregation of revenue
The following tables disaggregate revenues under ASC 606 by major product/service line:

| Three months ended March 31, 2024
(in thousands) | Trade |  | Renewables |  | Nutrient & Industrial |  | Total
Specialty nutrients | $ | — |  |  | $ | — |  |  | $ | 69,724 |  |  | $ | 69,724 |
Primary nutrients | — |  |  | — |  |  | 67,312 |  |  | 67,312 |
Products and co-products | 102,344 |  |  | 306,165 |  |  | — |  |  | 408,509 |
Propane | 69,796 |  |  | — |  |  | — |  |  | 69,796 |
Other | 1,973 |  |  | 1,247 |  |  | 30,282 |  |  | 33,502 |
Total | $ | 174,113 |  |  | $ | 307,412 |  |  | $ | 167,318 |  |  | $ | 648,843 |

| Three months ended March 31, 2023
(in thousands) | Trade |  | Renewables |  | Nutrient & Industrial |  | Total
Specialty nutrients | $ | — |  |  | $ | — |  |  | $ | 69,997 |  |  | $ | 69,997 |
Primary nutrients | — |  |  | — |  |  | 64,750 |  |  | 64,750 |
Products and co-products | 88,966 |  |  | 394,609 |  |  | — |  |  | 483,575 |
Propane | 76,523 |  |  | — |  |  | — |  |  | 76,523 |
Other | 12,590 |  |  | 2,348 |  |  | 29,195 |  |  | 44,133 |
Total | $ | 178,079 |  |  | $ | 396,957 |  |  | $ | 163,942 |  |  | $ | 738,978 |

Substantially all of the Company's revenues accounted for under ASC 606 during the periods presented in the preceding tables are recorded at a point in time instead of over time.
Contract balances
The balances of the Company’s contract liabilities were $80.5 million and $30.7 million as of March 31, 2024 and December 31, 2023, respectively. The difference between the opening and closing balances of the Company’s contract liabilities is primarily a result of timing differences between the Company’s performance and the customer’s payment. The main driver of the contract liabilities balance are payments for primary and specialty nutrients within the Nutrient & Industrial segment received in advance of fulfilling our performance obligations under our customer contracts. Due to seasonality of this business, contract liabilities are built up through the first quarter in preparation for the spring application season. Revenue is then recognized in the Nutrient & Industrial segment throughout the spring application season as the Company fulfills its contract obligations.
7. Income Taxes

|  |  | Three months ended March 31,
(in thousands) |  |  |  |  | 2024 |  | 2023
Income (loss) before income taxes |  |  |  |  | $ | 13,968 |  |  | $ | (65,001) |
Income tax provision (benefit) |  |  |  |  | 1,303 |  |  | (5,884) |
Effective tax rate |  |  |  |  | 9.3 | % |  | 9.1 | %

On a quarterly basis, the Company estimates the effective tax rate expected to be applicable for the full year and makes changes, if necessary, based on new information or events. The estimated annual effective tax rate is forecasted based on actual historical information and forward-looking estimates and is used to provide for income taxes in interim reporting periods. The Company also recognizes the tax impact of certain unusual or infrequently occurring items, such as the effects of changes in tax laws or rates and impacts from settlements with tax authorities, discretely in the quarter in which they occur.
The Andersons, Inc. | Q1 2024 Form 10-Q | 13

Table of Contents
The difference between the 9.3% effective tax rate and the U.S. federal statutory tax rate of 21.0% for the three months ended March 31, 2024 is primarily attributable to the tax impact of non-controlling interest, stock based compensation, and federal tax credits offset by state and local income taxes, nondeductible compensation, and other discrete tax items.
The difference between the 9.1% effective tax rate and the U.S. federal statutory rate of 21.0% for the three months ended March 31, 2023 is primarily attributable to the tax impact of non-controlling interest, state and local income taxes, and nondeductible compensation. During the three months ended March 31, 2023, a discrete income tax benefit of $12.0 million was recorded on a loss before income taxes of $94.7 million from ELEMENT operations, which included an $87.2 million impairment charge.
8. Accumulated Other Comprehensive Income
The following table summarizes the changes in accumulated other comprehensive income ("AOCI") attributable to the Company:

|  |  |  | Three months ended March 31,
(in thousands) |  |  |  |  |  | 2024 |  | 2023
Currency Translation Adjustment |  |  |  |  |  |  |  |
Beginning balance |  |  |  |  |  | $ | (2,581) |  |  | $ | (8,203) |
Other comprehensive income (loss) before reclassifications |  |  |  |  |  | (2,918) |  |  | 767 |
Tax effect |  |  |  |  |  | — |  |  | — |
Other comprehensive income (loss), net of tax |  |  |  |  |  | (2,918) |  |  | 767 |
Ending balance |  |  |  |  |  | $ | (5,499) |  |  | $ | (7,436) |
Hedging Adjustment |  |  |  |  |  |  |  |
Beginning balance |  |  |  |  |  | $ | 20,985 |  |  | $ | 23,546 |
Other comprehensive income (loss) before reclassifications |  |  |  |  |  | 8,796 |  |  | (4,302) |
Amounts reclassified from AOCI (a) |  |  |  |  |  | (3,953) |  |  | (2,105) |
Tax effect |  |  |  |  |  | (1,204) |  |  | 1,611 |
Other comprehensive income (loss), net of tax |  |  |  |  |  | 3,639 |  |  | (4,796) |
Ending balance |  |  |  |  |  | $ | 24,624 |  |  | $ | 18,750 |
Pension and Other Postretirement Adjustment |  |  |  |  |  |  |  |
Beginning balance |  |  |  |  |  | $ | 4,203 |  |  | $ | 4,883 |
Other comprehensive income (loss) before reclassifications |  |  |  |  |  | 5 |  |  | (14) |
Amounts reclassified from AOCI (b) |  |  |  |  |  | (228) |  |  | (228) |
Tax effect |  |  |  |  |  | 48 |  |  | 54 |
Other comprehensive income (loss), net of tax |  |  |  |  |  | (175) |  |  | (188) |
Ending balance |  |  |  |  |  | $ | 4,028 |  |  | $ | 4,695 |
Investments in Convertible Preferred Securities Adjustment |  |  |  |  |  |  |  |
Beginning balance |  |  |  |  |  | $ | 258 |  |  | $ | 258 |
Other comprehensive income (loss), net of tax |  |  |  |  |  | — |  |  | — |
Ending balance |  |  |  |  |  | $ | 258 |  |  | $ | 258 |
Total AOCI Ending Balance |  |  |  |  |  | $ | 23,411 |  |  | $ | 16,267 |

(a) Amounts reclassified from gain (loss) on cash flow hedges are reclassified from AOCI to income when the hedged item affects earnings. Gains and losses from interest rate derivatives are recognized in Interest expense, net as interest payments are made on the Company's variable rate debt. When interest rate derivatives are settled prior to maturity the gain or loss is recognized in Other income, net. See Note 5 for additional information.
(b) This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost recorded in Operating, administrative and general expenses.
The Andersons, Inc. | Q1 2024 Form 10-Q | 14

Table of Contents
9. Fair Value Measurements
The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis:

(in thousands) | March 31, 2024
Assets (liabilities) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Commodity derivatives, net (a) | $ | 48,750 |  |  | $ | 67,599 |  |  | $ | — |  |  | $ | 116,349 |
Provisionally priced contracts (b) | (86,176) |  |  | (30,709) |  |  | — |  |  | (116,885) |
Convertible preferred securities (c) | — |  |  | — |  |  | 15,625 |  |  | 15,625 |
Other assets and liabilities (d) | 5,525 |  |  | 32,860 |  |  | — |  |  | 38,385 |
Total | $ | (31,901) |  |  | $ | 69,750 |  |  | $ | 15,625 |  |  | $ | 53,474 |

(in thousands) | December 31, 2023
Assets (liabilities) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Commodity derivatives, net (a) | $ | 48,676 |  |  | $ | 39,572 |  |  | $ | — |  |  | $ | 88,248 |
Provisionally priced contracts (b) | (108,736) |  |  | (65,343) |  |  | — |  |  | (174,079) |
Convertible preferred securities (c) | — |  |  | — |  |  | 15,625 |  |  | 15,625 |
Other assets and liabilities (d) | 5,477 |  |  | 28,009 |  |  | — |  |  | 33,486 |
Total | $ | (54,583) |  |  | $ | 2,238 |  |  | $ | 15,625 |  |  | $ | (36,720) |

(in thousands) | March 31, 2023
Assets (liabilities) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Commodity derivatives, net (a) | $ | 32,115 |  |  | $ | 82,779 |  |  | $ | — |  |  | $ | 114,894 |
Provisionally priced contracts (b) | (16,187) |  |  | (52,150) |  |  | — |  |  | (68,337) |
Convertible preferred securities (c) | — |  |  | — |  |  | 15,410 |  |  | 15,410 |
Other assets and liabilities (d) | 8,357 |  |  | 24,983 |  |  | — |  |  | 33,340 |
Total | $ | 24,285 |  |  | $ | 55,612 |  |  | $ | 15,410 |  |  | $ | 95,307 |

(a)Includes associated cash posted/received as collateral.
(b)Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2).
(c)Recorded in “Other assets, net” on the Company’s Condensed Consolidated Balance Sheets related to certain available for sale securities.
(d)Included in other assets and liabilities are assets held by the Company to fund deferred compensation plans and foreign exchange derivative contracts (Level 1), as well as interest rate derivatives (Level 2).
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 quoted on various exchanges 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, the Company has concluded that “basis” is typically a Level 2 fair value input for purposes of the fair value disclosure requirements related to our commodity derivatives, depending on the specific commodity. 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 these commodity contracts.
The Andersons, Inc. | Q1 2024 Form 10-Q | 15

Table of Contents
These fair value disclosures exclude RMI which consists of agricultural commodity inventories measured at net realizable value. The net realizable value used to measure the Company’s agricultural commodity inventories is the fair value (spot price of the commodity in an exchange), less cost of disposal and transportation based on the local market. This valuation would generally be considered Level 2. The amount of RMI is disclosed in Note 2. Changes in the net realizable value of commodity inventories are recognized as a component of cost of sales and merchandising revenues.
Provisionally priced contract liabilities are those for which the Company has taken ownership and possession of grain, but the final purchase price has not been established. In the case of payables where the unpriced portion of the contract is limited to the futures price of the underlying commodity or the Company has delivered provisionally priced grain and a subsequent payable or receivable is set up for any future changes in the grain price, quoted exchange prices are used and the liability is deemed to be Level 1 in the fair value hierarchy. For all other unpriced contracts which include variable futures and basis components, the amounts recorded for delayed price contracts are determined on the basis of local grain market prices at the balance sheet date and, as such, are deemed to be Level 2 in the fair value hierarchy.
The convertible preferred securities are interests in several early-stage enterprises that may be in various forms, such as convertible debt or preferred equity securities.
A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows:

| Convertible Preferred Securities
(in thousands) | 2024 |  | 2023
Assets at January 1, | $ | 15,625 |  |  | $ | 16,278 |
Gains included in Other income, net | — |  |  | 802 |
Proceeds from investments | — |  |  | (1,670) |
Assets at March 31, | $ | 15,625 |  |  | $ | 15,410 |

The following tables summarize quantitative information about the Company's Level 3 fair value measurements:

| Quantitative Information about Recurring Level 3 Fair Value Measurements
| Fair Value as of |  |  |  |  |  |
(in thousands) | March 31, 2024 |  | December 31, 2023 |  | March 31, 2023 |  | Valuation Method |  | Unobservable Input |  | Weighted Average
Convertible preferred securities (a) | $ | 15,625 |  |  | $ | 15,625 |  |  | $ | 15,410 |  |  | Implied based on market prices |  | N/A |  | N/A

(a) The Company considers observable price changes and other additional market data available to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones, and other relevant market data points.

| Quantitative Information about Non-Recurring Level 3 Fair Value Measurements
| Fair Value as of |  |  |  |  |  |
(in thousands) | March 31, 2024 |  | December 31, 2023 |  | March 31, 2023 |  | Valuation Method |  | Unobservable Input |  | Weighted Average
Ethanol Plant Assets (a) | $ | — |  |  | $ | — |  |  | $ | 41,673 |  |  | Various |  | Various |  | N/A

(a) The Company recognized impairment charges on ELEMENT ethanol plant assets in Colwich, Kansas. The fair value of the assets was determined by a third-party consultant using a discounted cash flow method and a market approach. Both of these methods were given probability weightings based on management's assessment of the ethanol plant's future operations to arrive at the fair value of the ethanol plant assets. The discounted cash flow model is determined by discounting the projected free cash flows using an appropriate discount rate. Key assumptions in the projections of future cash flows used in the consultant's model included input costs (corn, natural gas, etc.), production days, and co-product premiums. The market approach analyzed enterprise value to ethanol production capacity multiples for a group of guideline public companies as well as recent mergers and acquisition transactions. Using these multiples as a baseline, the consultant applied selected multiples to the ELEMENT plant production capacity to arrive at an indicated fair value. These measures are considered Level 3 inputs on a nonrecurring basis.
The fair value of the Company’s cash equivalents, accounts receivable and accounts payable approximate their carrying value as they are close to maturity.
The Andersons, Inc. | Q1 2024 Form 10-Q | 16

Table of Contents
10. Related Parties
In the ordinary course of business, and on an arm's length basis, the Company will enter into related party transactions with the minority shareholder of the Company's Renewables operations and certain equity method investments that the Company holds, along with other related parties.
The following table sets forth the related party transactions entered into for the time periods presented:

| Three months ended March 31, |  |
(in thousands) | 2024 |  | 2023 |  |  |  |
Sales of products | $ | 61,611 |  |  | $ | 74,951 |  |  |  |  |
Purchases of products | 8,292 |  |  | 15,702 |  |  |  |  |

(in thousands) | March 31, 2024 |  | December 31, 2023 |  | March 31, 2023
Accounts receivable | $ | 14,504 |  |  | $ | 6,732 |  |  | $ | 10,350 |
Accounts payable | 5,333 |  |  | 3,901 |  |  | 2,800 |

11. Segment Information
The Company’s operations include three reportable business segments that are distinguished primarily on the basis of products and services offered as well as the structure of management. The Trade business includes commodity merchandising and the operation of terminal grain elevator facilities. The Renewables business produces ethanol and co-products through its four co-owned and fully consolidated ethanol production facilities as well as purchases and sells ethanol and ethanol co-products. The Nutrient & Industrial business manufactures and distributes plant nutrient products such as agricultural inputs, primarily fertilizers and turf care products along with industrial products such as deicers, dust abatement solutions and corncob-based products. The Other category includes other corporate level costs not attributable to an operating segment and intercompany eliminations between the segments.
The segment information below includes the allocation of expenses shared by one or more operating segments. Although management believes such allocations are reasonable, the operating information does not necessarily reflect how such data might appear if the segments were operated as separate businesses. The Company does not have any customers who represent 10 percent or more of total revenues.

|  |  | Three months ended March 31,
(in thousands) |  |  |  |  | 2024 |  | 2023
Revenues from external customers |  |  |  |  |  |  |
Trade |  |  |  |  | $ | 1,893,859 |  |  | $ | 2,877,780 |
Renewables |  |  |  |  | 657,039 |  |  | 839,516 |
Nutrient & Industrial |  |  |  |  | 167,319 |  |  | 163,942 |
Total |  |  |  |  | $ | 2,718,217 |  |  | $ | 3,881,238 |

|  |  | Three months ended March 31,
(in thousands) |  |  |  |  | 2024 |  | 2023
Income (loss) before income taxes |  |  |  |  |  |  |
Trade |  |  |  |  | $ | 5,924 |  |  | $ | 39,364 |
Renewables (a) |  |  |  |  | 22,791 |  |  | (82,513) |
Nutrient & Industrial |  |  |  |  | (1,850) |  |  | (10,438) |
Other |  |  |  |  | (12,897) |  |  | (11,414) |
Total |  |  |  |  | $ | 13,968 |  |  | $ | (65,001) |

(a) Includes income (loss) attributable to noncontrolling interests of $7.1 million and $(44.4) million for the three months ended March 31, 2024 and 2023.
The Andersons, Inc. | Q1 2024 Form 10-Q | 17

Table of Contents
12. Commitments and Contingencies
Litigation activities
The Company is party to litigation, or threats thereof, both as defendant and plaintiff with some regularity, although individual cases that are material in size occur infrequently. As a defendant, the Company establishes reserves for claimed amounts that are considered probable and capable of estimation. If those cases are resolved for lesser amounts, the excess reserves are taken into income and, conversely, if those cases are resolved for larger than the amount the Company has accrued, the Company records additional expense. The Company believes it is unlikely that the results of its current legal proceedings for which it is the defendant, even if unfavorable, will be material. As a plaintiff, amounts that are collected can also result in sudden, non-recurring income.
Litigation results depend upon a variety of factors, including the availability of evidence, the credibility of witnesses, the performance of counsel, the state of the law, and the impressions of judges and jurors, any of which can be critical in importance, yet difficult, if not impossible, to predict. Consequently, cases currently pending, or future matters, may result in unexpected, and non-recurring losses, or income, from time to time. Finally, litigation results are often subject to judicial reconsideration, appeal and further negotiation by the parties, and as a result, the final impact of a particular judicial decision may be unknown for some time or may result in continued reserves to account for the potential of such post-verdict actions.
The estimated losses for outstanding claims that are considered reasonably possible are not material.
13. Other Income, net
The following table sets forth the items in Other income, net within the Condensed Consolidated Statements of Operations:

| Three months ended March 31, |  |
(in thousands) | 2024 |  | 2023 |  |  |  |
Interest income | $ | 4,682 |  |  | $ | 1,467 |  |  |  |  |
Gain on deconsolidation of joint venture | 3,117 |  |  | — |  |  |  |  |
Patronage income | 2,869 |  |  | 2,629 |  |  |  |  |
Property insurance recoveries | — |  |  | 1,000 |  |  |  |  |
Other | 860 |  |  | 2,908 |  |  |  |  |
Total | $ | 11,528 |  |  | $ | 8,004 |  |  |  |  |

Individually significant items included in the table above are:
Interest income - In 2024 and 2023, the vast majority of interest income recorded by the Company was due to the amount of cash and cash equivalents on hand.
Gain on deconsolidation of joint venture - On April 18, 2023, ELEMENT was placed into receivership. As the receiver took control of ELEMENT, under the VIE consolidation model, the Company was deemed to have lost control of the entity and therefore deconsolidated ELEMENT from its Condensed Consolidated Financial Statements. As a result of these activities, the Company recognized a gain on deconsolidation in the second quarter of 2023. The Company recognized an additional $3.1 million gain in the first quarter of 2024 as the amount of cash distributed to the Company related to its receivables from ELEMENT exceeded management's estimate at the time of deconsolidation.
Patronage income - As a part of the Company’s normal operations it relies on short-term lines of credit to support working capital needs in addition to long-term debt. The Company receives patronage income from its lenders as a part of these programs.
Property insurance recoveries - In 2023, all property insurance recoveries presented relate to a fire at a Michigan grain asset.
The Andersons, Inc. | Q1 2024 Form 10-Q | 18

Table of Contents
14. Subsequent Events
On April 30, 2024, the Company closed on the acquisition of Reed & Perrine Sales, Inc., a manufacturer and distributor of premium turf fertilizers and control products headquartered in New Jersey, for a purchase price of approximately $6.7 million plus working capital.
The Andersons, Inc. | Q1 2024 Form 10-Q | 19

Table of Contents
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward Looking Statements
The following “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contains forward-looking statements which relate to future events or future financial performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. Such factors include, but are not limited to, the effects of economic, weather and agricultural conditions, regulatory conditions, competition globally and in the markets the Company serves, geopolitical risk, fluctuations in cost and availability of commodities, the effectiveness of the Company's internal control over financial reporting and the unpredictability of existing and possible future litigation. However, it is not possible to predict or identify all such factors. The reader is urged to carefully consider these risks and others, including those risk factors listed under Item 1A of the 2023 Form 10-K. In some cases, the reader can identify forward-looking statements by terminology such as may, anticipates, believes, estimates, predicts, or the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These forward-looking statements relate only to events as of the date on which the statements are made and the Company undertakes no obligation, other than any imposed by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Although management believes that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
Critical Accounting Policies and Estimates
Our critical accounting policies and critical accounting estimates, as described in our 2023 Form 10-K, have not materially changed through the first quarter of 2024.
Executive Overview
Our operations are organized, managed and classified into three reportable business segments: Trade, Renewables and Nutrient & Industrial. Each of these segments is generally based on the nature of products and services offered and aligns with the management structure.
The agricultural commodity-based business is one in which changes in selling prices generally move in relationship to changes in purchase prices. Therefore, increases or decreases in prices of the agricultural commodities that the business deals in will have a relatively equal impact on sales and merchandising revenues and cost of sales and merchandising revenues and a much less significant impact on gross profit. As a result, changes in sales and merchandising revenues and cost of sales and merchandising revenues between periods may not necessarily be indicative of the overall performance of the business and greater emphasis should be placed on changes in gross profit.
Trade
The Trade segment’s first quarter operating results were behind those of the prior year. Trade's grain asset locations received a substantial amount of insurance recoveries on damaged inventories and assets in the first quarter of the prior year. Otherwise, the results of the asset locations were relatively consistent year-over-year as domestic producers remain hesitant to forward sell due to lower commodity prices combined with limited basis appreciation to start the year. The merchandising business remained profitable but could not match a very strong first quarter in the prior year. An oversupply of commodities has shifted the global supply and demand balance, moving the market from an inverse to a carry and causing prices to weaken. While carry markets benefit the asset locations, reduced volatility and lower prices reduce opportunities for the merchandising business. In addition, given recent geopolitical unrest, we have intentionally and prudently pulled back on activity in certain regions.
Premium food and feed product lines produced stronger results in the first quarter, and recent acquisitions and growth capital investments continue to be accretive to this line of business.
With shifting fundamentals, our mix of assets and merchandising businesses provide a solid foundation for us to benefit from large crops and carry markets, with wheat income opportunities potentially returning to the market. Our assets are well-positioned for the grains to flow in due course. Domestic premium ingredient demand is also expected to stay solid and should continue to support recent capital growth investments.
The Andersons, Inc. | Q1 2024 Form 10-Q | 20

Table of Contents
Agricultural inventories on hand were 106.7 million and 99.6 million bushels at March 31, 2024 and March 31, 2023, respectively. These bushels consist of inventory held at company-owned or leased facilities, transload inventory, in-transit inventory, and third-party held inventory. Total Trade storage space capacity at company-owned or leased facilities, including temporary pile storage, was approximately 169 million bushels at March 31, 2024, which is slightly lower than the 180 million bushels of capacity in the prior year after the divestiture of certain grain assets.
Renewables
The Renewables segment's first quarter operating results were significantly higher than the prior year as the Company recorded an $87.2 million impairment charge related to the ELEMENT ethanol plant in 2023. After considering the impact of the impairment charge, the Renewables segment still outperformed the prior year as ethanol crush margins improved year-over-year, further supported by favorable hedging positions. The Company's production facilities continued to operate efficiently in the quarter with record production and lower natural gas costs. Renewables diesel feedstocks volumes continue to grow albeit with compressed margins on industry fundamentals. Feed ingredient demand was also improved, however, values declined on lower corn prices. All four plants have now completed their semi-annual maintenance shutdowns and are operating at full capacity. The ethanol margin environment should remain favorable, specifically at the eastern production facilities as corn basis in the east remains well below levels in the west, as well as an expected increase in ethanol export volumes.
Ethanol and related co-products volumes were as follows:

|  |  | Three months ended March 31,
(in thousands) |  |  |  |  | 2024 |  | 2023
Ethanol (gallons shipped) |  |  |  |  | 185,826 |  |  | 186,566 |
E-85 (gallons shipped) |  |  |  |  | 12,291 |  |  | 9,519 |
Vegetable oils (pounds shipped) (a) |  |  |  |  | 370,983 |  |  | 261,655 |
DDG (tons shipped) (b) |  |  |  |  | 548 |  |  | 529 |

(a) Includes corn oil, soybean oil, and other fats, oils, and greases.
(b) DDG tons shipped converts wet tons to a dry ton equivalent amount.
Nutrient & Industrial
The Nutrient & Industrial segment's first quarter operating results improved from the prior year. During this seasonally slow period, the majority of the improvement was driven by increased volumes and margins in core agricultural product lines. Total segment volumes were up 12% when compared to the prior year with an overall increase in margins. Prior year margins were impacted by inventory write downs during a period of declining core fertilizer values. Spring applications remain behind both the prior year and the five-year average in our core geographic areas as wet and cold weather has caused delays. We expect strong demand through the s if planting conditions improve.
Storage capacity at our Ag Supply Chain and Specialty Liquids facilities, including leased storage, was approximately 458 thousand tons for dry nutrients and approximately 508 thousand tons for liquid nutrients at March 31, 2024, which is similar to the prior year.
Tons of product sold were as follows:

|  |  | Three months ended March 31,
(in thousands) |  |  |  |  | 2024 |  | 2023
Ag Supply Chain |  |  |  |  | 199 |  |  | 170 |
Specialty Liquids |  |  |  |  | 91 |  |  | 82 |
Engineered Granules |  |  |  |  | 64 |  |  | 63 |
Total tons |  |  |  |  | 354 |  |  | 315 |

In the table above, Ag Supply Chain represents facilities principally engaged in the wholesale distribution and retail sale and application of primary agricultural nutrients such as bulk nitrogen, phosphorus, and potassium. Specialty Liquid locations produce and sell a variety of low-salt liquid starter fertilizers, micronutrients for agricultural use, and specialty products for use in various industrial processes. Engineered Granules include a variety of corncob-based products and facilities that primarily manufacture granulated dry products for use in specialty turf and agricultural applications.
The Andersons, Inc. | Q1 2024 Form 10-Q | 21

Table of Contents
Other
Our “Other” activities include corporate income and expense and cost for functions that provide support and services to the operating segments. The results include expenses and benefits not allocated to the operating segments and other elimination and consolidation adjustments.
Comparison of the three months ended March 31, 2024, with the three months ended March 31, 2023, including a reconciliation of GAAP to non-GAAP measures:

| Three months ended March 31, 2024
(in thousands) | Trade |  | Renewables |  | Nutrient & Industrial |  | Other |  | Total
Sales and merchandising revenues | $ | 1,893,859 |  |  | $ | 657,039 |  |  | $ | 167,319 |  |  | $ | — |  |  | $ | 2,718,217 |
Cost of sales and merchandising revenues | 1,815,577 |  |  | 630,469 |  |  | 143,851 |  |  | — |  |  | 2,589,897 |
Gross profit | 78,282 |  |  | 26,570 |  |  | 23,468 |  |  | — |  |  | 128,320 |
Operating, administrative and general expenses | 72,258 |  |  | 7,997 |  |  | 25,443 |  |  | 13,660 |  |  | 119,358 |
Interest expense (income), net | 5,633 |  |  | 532 |  |  | 923 |  |  | (566) |  |  | 6,522 |
Other income, net | 5,533 |  |  | 4,750 |  |  | 1,048 |  |  | 197 |  |  | 11,528 |
Income (loss) before income taxes | $ | 5,924 |  |  | $ | 22,791 |  |  | $ | (1,850) |  |  | $ | (12,897) |  |  | $ | 13,968 |
Income before income taxes attributable to the noncontrolling interests | — |  |  | 7,084 |  |  | — |  |  | — |  |  | 7,084 |
Non-GAAP Income (loss) before income taxes attributable to the Company | $ | 5,924 |  |  | $ | 15,707 |  |  | $ | (1,850) |  |  | $ | (12,897) |  |  | $ | 6,884 |

| Three months ended March 31, 2023
(in thousands) | Trade |  | Renewables |  | Nutrient & Industrial |  | Other |  | Total
Sales and merchandising revenues | $ | 2,877,780 |  |  | $ | 839,516 |  |  | $ | 163,942 |  |  | $ | — |  |  | $ | 3,881,238 |
Cost of sales and merchandising revenues | 2,760,602 |  |  | 823,713 |  |  | 148,912 |  |  | — |  |  | 3,733,227 |
Gross profit | 117,178 |  |  | 15,803 |  |  | 15,030 |  |  | — |  |  | 148,011 |
Operating, administrative and general expenses | 71,980 |  |  | 8,904 |  |  | 24,132 |  |  | 12,219 |  |  | 117,235 |
Asset impairment | — |  |  | 87,156 |  |  | — |  |  | — |  |  | 87,156 |
Interest expense (income), net | 11,817 |  |  | 3,097 |  |  | 2,182 |  |  | (471) |  |  | 16,625 |
Other income, net | 5,983 |  |  | 841 |  |  | 846 |  |  | 334 |  |  | 8,004 |
Income (loss) before income taxes | $ | 39,364 |  |  | $ | (82,513) |  |  | $ | (10,438) |  |  | $ | (11,414) |  |  | $ | (65,001) |
Loss before income taxes attributable to the noncontrolling interests | — |  |  | (44,367) |  |  | — |  |  | — |  |  | (44,367) |
Non-GAAP Income (loss) before income taxes attributable to the Company | $ | 39,364 |  |  | $ | (38,146) |  |  | $ | (10,438) |  |  | $ | (11,414) |  |  | $ | (20,634) |

The Company uses Income (loss) before income taxes attributable to the Company, a non-GAAP financial measure as defined by the Securities and Exchange Commission, to evaluate the Company’s financial performance. This performance measure is not defined by accounting principles generally accepted in the United States and should be considered in addition to, and not in lieu of, GAAP financial measures. Management believes that Income (loss) before income taxes attributable to the Company is a useful measure of the Company’s performance as it provides investors additional information about the Company's operations, allowing evaluation of underlying business performance and period-to-period comparability. This measure is not intended to replace or be an alternative to Income (loss) before income taxes, the most directly comparable amounts reported under GAAP.
The Andersons, Inc. | Q1 2024 Form 10-Q | 22

Table of Contents
Trade
Operating results for the Trade segment decreased by $33.4 million from the prior year. Sales and merchandising revenues decreased by $983.9 million, and cost of sales and merchandising revenues decreased by $945.0 million for a decreased gross profit impact of $38.9 million. The majority of the decrease in sales and merchandising revenues and cost of sales and merchandising revenues can be attributed to a decrease in volumes. Much of this decrease was intentional as management made a prudent decision to pull back on activity in certain regions due to the recent geopolitical unrest. A lesser impact in volumes was from delayed farmer engagement from lower commodity prices. Commodity prices have weakened due to the oversupply of commodities shifting the global supply and demand balance, as we have moved from an inverse to a carry market. Of the $38.9 million decrease in gross profit, $25.3 million was related to insurance recoveries recorded in the prior year within the asset-based business. This was followed by a $15.3 million decrease in the merchandising businesses as there were less trading opportunities in a less volatile commodity market.
Interest expense decreased by $6.2 million due to reduced short-term borrowings from lower commodity prices in addition to the business managing working capital usage in a higher interest rate environment.
Renewables
Operating results for Renewables increased by $53.9 million from the same period of prior year. Sales and merchandising revenues decreased by $182.5 million, and cost of sales and merchandising revenues decreased by $193.2 million compared to prior year. As a result, gross profit increased by $10.8 million. The decrease in both sales and merchandising revenues and cost of sales and merchandising revenues can be mainly attributed to lower ethanol and renewable diesel feedstocks values. The prior year results also include approximately $40 million of sales and merchandising revenues and cost of sales and merchandising revenues from the previously consolidated ELEMENT facility. There was a modest increase in volumes to the continued growth of our renewable diesel feedstock merchandising business, partially offset by the lack of ELEMENT activity in 2024. The gross profit associated with the ethanol plants was $15.3 million higher than the prior year from improved ethanol margins, favorable hedging positions, lower energy costs, and the removal of ELEMENT from consolidated results. This improvement at the plant level was partially offset by lower gross profit of $4.9 million from our third-party trading businesses as higher supply resulted in less volatility and fewer trading opportunities.
An asset impairment charge of $87.2 million related to ELEMENT was recorded in the prior year. As ELEMENT was a consolidated subsidiary of the Company at the time, the entire impairment charge is reflected in Asset impairment.
Interest expense decreased by $2.6 million from the prior year due to the deconsolidation of ELEMENT non-recourse debt.
Other income, net increased from the prior year by $3.9 million as the Company recorded an additional $3.1 million gain in the first quarter of 2024 as the amount of cash distributed to the Company related to its receivables from ELEMENT exceeded management's estimate in the prior year.
Nutrient & Industrial
Operating results for the Nutrient & Industrial segment increased by $8.6 million when compared to the same period of the prior year. Sales and merchandising revenues increased $3.4 million, and cost of sales and merchandising revenues decreased by $5.1 million resulting in increased gross profit of $8.4 million. The increase in sales and merchandising revenues and decrease in cost of sales and merchandising revenues within the segment was mainly due to margin improvement, led by the Ag Supply Chain business, as volumes only modestly increased from the prior year. Gross profit in the Ag Supply Chain business increased by $10.3 million due to the more stable pricing environment in the current year. The prior year also includes an inventory write down. Gross profit within the Engineered Granules business decreased approximately $1.7 million from the prior year due to lower margins, specifically in turf markets, as volumes remained flat to the prior year.
Operating, administrative and general expenses increased $1.3 million from prior year due to higher bad debt expense in the current year and collections on reserved balances associated with the legacy Rail business in the prior year that did not recur.
Interest expense decreased $1.3 million from prior year due to lower working capital usage.
The Andersons, Inc. | Q1 2024 Form 10-Q | 23

Table of Contents
Income Taxes
For the three months ended March 31, 2024, the Company recorded income tax expense of $1.3 million. The Company's effective tax rate was 9.3% on income before taxes of $14.0 million. The difference between the 9.3% effective tax rate and the U.S. federal statutory tax rate of 21.0% is primarily attributable to the tax impact of non-controlling interest, stock-based compensation, and federal tax credits offset by state and local income taxes, nondeductible compensation, and other discrete tax items.
For the three months ended March 31, 2023, the Company recorded an income tax benefit of $5.9 million. The Company’s effective tax rate was 9.1% on a loss before income taxes of $65.0 million. The difference between the 9.1% effective tax rate and the U.S. federal statutory rate of 21.0% is primarily attributable to the tax impact of non-controlling interest, state and local taxes, and nondeductible compensation. During the three months ended March 31, 2023, a discrete income tax benefit of $12.0 million was recorded on a loss before income taxes of $94.7 million from ELEMENT operations, which included an $87.2 million impairment charge.
The Company’s subsidiary partnership returns are under federal tax examination by the Internal Revenue Service (“IRS”) for the tax years 2015 through 2021. The Company’s subsidiary is under federal tax examination by the Mexican tax authorities for tax year 2015. The IRS and Mexican tax authorities’ examinations could potentially be resolved within the next 12 months. The resolution of these examinations could change our unrecognized tax benefits and favorably impact income tax expense by a range of $2.9 million to $13.1 million.
On December 20, 2021, the Organization for Economic Co-operation and Development ("OECD") issued Pillar Two model rules introducing a global minimum tax of 15% on large corporations. Although the U.S. has not yet adopted the Pillar Two model rules, several foreign countries enacted legislation in 2023 which closely follow OECD’s Pillar Two guidance to be effective January 1, 2024. The impact of Pillar Two legislation on the Company's 2024 effective tax rate is expected to be minimal. Management will continue to monitor Pillar Two legislation in our relevant jurisdictions to determine any changes to the Company's effective tax rate.
The Andersons, Inc. | Q1 2024 Form 10-Q | 24

Table of Contents
Liquidity and Capital Resources
Working Capital
At March 31, 2024, the Company had working capital of $1,130.6 million, an increase of $192.5 million from the prior year. This increase was attributable to changes in the following components of current assets and current liabilities:

(in thousands) | March 31, 2024 |  | March 31, 2023 |  | Variance
Current Assets: |  |  |  |  |
Cash and cash equivalents | $ | 283,902 |  |  | $ | 70,853 |  |  | $ | 213,049 |
Accounts receivable, net | 701,706 |  |  | 1,125,071 |  |  | (423,365) |
Inventories | 994,543 |  |  | 1,551,101 |  |  | (556,558) |
Commodity derivative assets – current | 178,623 |  |  | 222,036 |  |  | (43,413) |
Other current assets | 55,134 |  |  | 81,407 |  |  | (26,273) |
Total current assets | 2,213,908 |  |  | 3,050,468 |  |  | (836,560) |
Current Liabilities: |  |  |  |  |
Short-term debt | 10,148 |  |  | 638,210 |  |  | (628,062) |
Trade and other payables | 625,836 |  |  | 768,872 |  |  | (143,036) |
Customer prepayments and deferred revenue | 174,651 |  |  | 309,546 |  |  | (134,895) |
Commodity derivative liabilities – current | 67,079 |  |  | 107,983 |  |  | (40,904) |
Current maturities of long-term debt | 27,617 |  |  | 85,567 |  |  | (57,950) |
Accrued expenses and other current liabilities | 177,953 |  |  | 202,133 |  |  | (24,180) |
Total current liabilities | 1,083,284 |  |  | 2,112,311 |  |  | (1,029,027) |
Working Capital | $ | 1,130,624 |  |  | $ | 938,157 |  |  | $ | 192,467 |

Current assets as of March 31, 2024, decreased $836.6 million in comparison to those as of March 31, 2023. This decrease was primarily related to the reduction of inventories and receivables which was partially offset by an increase in cash. The decreases in inventories and receivables can largely be attributed to the stabilization of agricultural commodity prices over the last year in comparison to historically high price levels of agricultural commodities, including fertilizer, in the same period of the prior year. The decreases in inventory and receivables also had a direct impact on cash as the Company was not deploying the cash to hold working capital as it had done in the previous year.
Current liabilities decreased $1,029.0 million from the prior year mainly due to the decreased utilization of the Company's short-term credit facility. The decreased use of the short-term credit facility is a result of the stabilization of commodity prices over the last year compared to the historically high commodity prices in the same period of the prior year, as well as a strategic focus on managing the use of short-term debt to fund working capital in light of the rising interest rate environment.
Sources and Uses of Cash

|  | Three months ended March 31,
(in thousands) |  | 2024 |  | 2023
Net cash used in operating activities |  | $ | (239,627) |  |  | $ | (333,535) |
Net cash used in investing activities |  | (22,052) |  |  | (19,807) |
Net cash (used in) provided by financing activities |  | (98,280) |  |  | 308,817 |

Operating Activities
Operating activities used cash of $239.6 million and $333.5 million in the first three months of 2024 and 2023, respectively. The amount of cash used in operating activities is consistent with expectations due to the seasonal cash outflows from the settlement of payables with producers that the Company typically experiences in the first quarter. When removing the significant changes in working capital and the significant amount of insurance recoveries received in 2023, the amount of cash provided by operating activities is ahead of the prior year.
The Andersons, Inc. | Q1 2024 Form 10-Q | 25

Table of Contents
Investing Activities
Investing activities used cash of $22.1 million through the first three months of 2024 compared to using cash of $19.8 million in the prior period. The prior year included approximately $2.9 million of additional net proceeds from the Company's exit of the Rail business which accounted for the variance from the prior year.
We expect to invest approximately $150 to $175 million in property, plant and equipment in 2024; approximately 50% of which will be to maintain current facilities.
Financing Activities
Financing activities used cash of $98.3 million and provided cash of $308.8 million for the three months ended March 31, 2024 and 2023, respectively. This increase in cash used from the prior year is solely due to the change in the Company's borrowings on its short-term credit facility. The Company had sufficient cash on hand in the first quarter of 2024 to cover the large amount of settled payables and other changes in working capital.
The Company paid $6.5 million in dividends in the first three months of 2024 compared to $6.3 million paid in the prior period. The Company paid dividends of $0.190 and $0.185 per common share in January of 2024 and 2023, respectively. On February 15, 2024, the Company declared a cash dividend of $0.190 per common share payable on April 22, 2024, to shareholders of record on April 1, 2024.
The Company is party to borrowing arrangements with a syndicate of banks that provide a total of $1,859.1 million in borrowing capacity. As of March 31, 2024, the Company had $1,845.6 million available for borrowing.
Certain of our long-term borrowings include covenants that, among other things, impose minimum levels of working capital and various debt leverage ratios. The Company is in compliance with all covenants as of March 31, 2024. In addition, certain of our long-term borrowings are collateralized by mortgages on various facilities.
The Company is typically in a significant net short-term borrowing position in the first two quarters of the year. The majority of these short-term borrowings bear interest at variable rates, an increase in interest rates could have a significant impact on our profitability. In addition, periods of high grain prices and/or unfavorable market conditions could require us to make additional margin deposits on our exchange traded futures contracts. Conversely, in periods of declining prices, the Company could receive a return of cash.
Management believes the Company's sources of liquidity will be adequate to fund operations, capital expenditures and service indebtedness.
At March 31, 2024, the Company had standby letters of credit outstanding of $3.3 million.
The Andersons, Inc. | Q1 2024 Form 10-Q | 26

Table of Contents
Item 3. Quantitative and Qualitative Disclosures about Market Risk
For further information, refer to our Annual Report on Form 10-K for the year ended December 31, 2023. There were no material changes in market risk, specifically commodity and interest rate risk during the three months ended March 31, 2024.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Based on an evaluation under the supervision and with the participation of the Company’s management, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act were effective as of March 31, 2024, to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
There were no changes in the Company’s internal control over financial reporting during the first quarter of 2024, identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
The Andersons, Inc. | Q1 2024 Form 10-Q | 27

Table of Contents
Part II. Other Information
Item 1. Legal Proceedings
The Company is subject to legal proceedings and claims that have not been fully resolved and that have arisen in the ordinary course of business. Refer to Part I, Item 1 of this Form 10-Q in the Notes to Condensed Consolidated Financial Statements in Note 12, “Commitments and Contingencies,” In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims.
The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts above management’s expectations, the Company’s financial condition and operating results for that reporting period could be materially adversely affected.
Item 1A. Risk Factors
The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those described in Part I, Item 1A of the 2023 Form 10-K under the heading “Risk Factors,” any one or more of which could, directly or indirectly, cause the Company’s actual financial condition and operating results to vary materially from past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition, operating results and stock price.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Periods |  | Total Number of Shares Purchased (a) |  | Average Price Paid Per Share |  | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |  | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (b)
January 2024 |  | 14,455 |  |  | $ | 57.54 |  |  | — |  |  | $ | 85,532,211 |
February 2024 |  | 108,871 |  |  | 52.76 |  |  | — |  |  | 85,532,211 |
March 2024 |  | 27,036 |  |  | 55.28 |  |  | — |  |  | 85,532,211 |
Total |  | 150,362 |  |  | $ | 53.67 |  |  | — |  |  | $ | 85,532,211 |

(a) During the three months ended March 31, 2024, the Company acquired shares of common stock held by employees who tendered owned shares to satisfy tax withholding obligations.
(b) As of August 20, 2021, the Company was authorized to purchase up to $100 million of the Company’s common stock (the "Repurchase Plan") on or before August 20, 2024. As of March 31, 2024, $14.5 million of the $100 million available to repurchase shares had been utilized. The Repurchase Plan does not obligate the Company to acquire any specific number of shares. Under the Repurchase Plan, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act.
Item 5. Other Information
During the three months ended March 31, 2024, none of the Company’s directors or executive officers adopted, modified, or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”
The Andersons, Inc. | Q1 2024 Form 10-Q | 28

Table of Contents
Item 6. Exhibits

Exhibit Number |  | Description
10.1* |  | Form of Performance Share Unit - Earnings Per Share & Total Shareholder Return
31.1* |  | Certification of the 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** |  | Inline XBRL Document Set for the Condensed Consolidated Financial Statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q.
104** |  | Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.
* Filed herewith
** Furnished herewith

Items 3 and 4 are not applicable and have been omitted.
The Andersons, Inc. | Q1 2024 Form 10-Q | 29

Table of Contents
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

|  | THE ANDERSONS, INC.
Date: May 8, 2024 |  | /s/ Patrick E. Bowe
|  | Patrick E. Bowe
|  | President and Chief Executive Officer
Date: May 8, 2024 |  | /s/ Brian A. Valentine
|  | Brian A. Valentine
|  | Executive Vice President and Chief Financial Officer

The Andersons, Inc. | Q1 2024 Form 10-Q | 30