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Derivatives
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives 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 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)September 30, 2024December 31, 2023September 30, 2023
Cash collateral paid $49,341 $24,439 $16,121 
Fair value of derivatives(10,199)24,237 38,203 
Net derivative asset position$39,142 $48,676 $54,324 

The following table presents, on a gross basis, current and non-current commodity derivative assets and liabilities:
September 30, 2024
(in thousands)Commodity Derivative Assets - CurrentCommodity Derivative Assets - NoncurrentCommodity Derivative Liabilities - CurrentCommodity Derivative Liabilities - NoncurrentTotal
Commodity derivative assets$154,042 $3,656 $11,207 $219 $169,124 
Commodity derivative liabilities(81,057)(96)(96,847)(1,916)(179,916)
Cash collateral paid 49,341 — — — 49,341 
Balance sheet line item totals$122,326 $3,560 $(85,640)$(1,697)$38,549 

December 31, 2023
(in thousands)Commodity Derivative Assets - CurrentCommodity Derivative Assets - NoncurrentCommodity Derivative Liabilities - CurrentCommodity Derivative Liabilities - NoncurrentTotal
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 
September 30, 2023
(in thousands)Commodity Derivative Assets - CurrentCommodity Derivative Assets - NoncurrentCommodity Derivative Liabilities - CurrentCommodity Derivative Liabilities - NoncurrentTotal
Commodity derivative assets$301,990 $4,730 $12,733 $101 $319,554 
Commodity derivative liabilities(78,516)(396)(155,244)(1,669)(235,825)
Cash collateral paid 16,121 — — — 16,121 
Balance sheet line item totals$239,595 $4,334 $(142,511)$(1,568)$99,850 

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 September 30,Nine months ended September 30,
(in thousands)2024202320242023
Losses on commodity derivatives included in Cost of sales and merchandising revenues$(87,774)$(26,918)$(74,600)$(49,659)

The Company's volumes of commodity derivative contracts outstanding (on a gross basis) are as follows:
September 30, 2024
(in thousands)Number of BushelsNumber of GallonsNumber of Tons
Non-exchange traded:
Corn562,754 — — 
Soybeans56,718 — — 
Wheat79,817 — — 
Oats27,851 — — 
Ethanol— 305,865 — 
Dried distillers grain— — 931 
Soybean meal— — 607 
Other4,073 83,847 2,056 
Subtotal731,213 389,712 3,594 
Exchange traded:
Corn185,750 — — 
Soybeans41,835 — — 
Wheat97,018 — — 
Oats1,165 — — 
Ethanol— 71,736 — 
Propane— 84,798 — 
Other— 2,016 1,432 
Subtotal325,768 158,550 1,432 
Total1,056,981 548,262 5,026 
December 31, 2023
(in thousands)Number of BushelsNumber of GallonsNumber of Tons
Non-exchange traded:
Corn519,825 — — 
Soybeans41,848 — — 
Wheat66,953 — — 
Oats15,355 — — 
Ethanol— 206,986 — 
Dried distillers grain— — 740 
Soybean meal— — 546 
Other6,847 37,153 1,882 
Subtotal650,828 244,139 3,168 
Exchange traded:
Corn160,795 — — 
Soybeans34,250 — — 
Wheat64,778 — — 
Oats375 — — 
Ethanol— 97,272 — 
Propane— 74,550 — 
Other— 420 825 
Subtotal260,198 172,242 825 
Total911,026 416,381 3,993 

September 30, 2023
(in thousands)Number of BushelsNumber of GallonsNumber of Tons
Non-exchange traded:
Corn546,004 — — 
Soybeans66,884 — — 
Wheat114,195 — — 
Oats24,712 — — 
Ethanol— 217,092 — 
Dried distillers grain— — 669 
Soybean meal— — 686 
Other9,734 26,632 2,295 
Subtotal761,529 243,724 3,650 
Exchange traded:
Corn158,900 — — 
Soybeans36,135 — — 
Wheat106,068 — — 
Oats1,865 — — 
Ethanol— 121,002 — 
Propane— 108,990 — 
Other— 672 779 
Subtotal302,968 230,664 779 
Total1,064,497 474,388 4,429 
Interest Rate Derivatives

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

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

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

(in thousands)September 30, 2024December 31, 2023September 30, 2023
Derivatives designated as hedging instruments
Interest rate contracts included in Other current assets$6,000 $9,968 $12,026 
Interest rate contracts included in Other assets14,281 18,041 29,952 

The recording of gains and losses on the interest rate derivatives and the financial statement line in which they are located are as follows:
Three months ended September 30,Nine months ended September 30,
(in thousands)2024202320242023
Derivatives designated as hedging instruments
Interest rate derivative gains (losses) included in Other comprehensive income$(12,477)$7,981 $(7,754)$10,571 
Interest rate derivative gains (losses) included in Interest expense, net3,194 2,734 9,782 7,354 
Interest rate derivative gains included in Other income, net— — 568 — 
    

Outstanding interest rate derivatives, as of September 30, 2024, are as follows:
Interest Rate Hedging InstrumentYear EnteredYear of Maturity Notional Amount
(in millions)		Description


Interest Rate
Swap20192025$44.5 Interest rate component of debt - accounted for as a hedge2.4%
Swap20192025$89.1 Interest rate component of debt - accounted for as a hedge2.3%
Swap20192025$44.5 Interest rate component of debt - accounted for as a hedge2.4%
Swap20202030$50.0 Interest rate component of debt - accounted for as a hedge
0.0% to 0.8%
Swap20202030$50.0 Interest rate component of debt - accounted for as a hedge
0.0% to 0.8%
Swap20222025$20.0 Interest rate component of debt - accounted for as a hedge2.6%
Swap20222029$100.0 Interest rate component of debt - accounted for as a hedge2.0%
Swap20222029$50.0 Interest rate component of debt - accounted for as a hedge2.4%
Swap20232025$50.0 Interest rate component of debt - accounted for as a hedge3.7%
Swap20232031$50.0 Interest rate component of debt - accounted for as a hedge2.9%