XML 34 R23.htm IDEA: XBRL DOCUMENT
v3.20.2

Equity Method Investments | 9 Months Ended
--- | ---
Sep. 30, 2020
Equity Method Investments [Abstract] |
Equity Method Investments | 16. EQUITY METHOD INVESTMENTS Green Plains Cattle Company LLC On September 1, 2019, Green Plains, TGAM and StepStone entered into the Second Amended and Restated Limited Liability Company Agreement of GPCC. GPCC was previously a wholly owned subsidiary of Green Plains. Green Plains also entered into a Securities Purchase Agreement with TGAM and StepStone, whereby TGAM and StepStone purchased an aggregate of 50% of the membership interests of GPCC from Green Plains. After closing, GPCC is no longer consolidated in the company’s consolidated financial statements and the GPCC investment is accounted for using the equity method of accounting. GPCC results prior to its disposition are classified as discontinued operations in our current and prior period financials. The GPCC investment is accounted for using the equity method of accounting. GPCC conducts the business of the joint venture, including (i) owning and operating the cattle feeding operations (as defined below), and (ii) any other activities approved by GPCC’s board of managers. GPCC continues to have the capacity to support 355,000 head of cattle and has approximately 11.7 million bushels of grain storage capacity. Historical GPCC operational results prior to its disposition are recorded as discontinued operations in the consolidated statement of operations. The company does not consolidate any part of the assets or liabilities or operating results of its equity method investee. The company’s share of net income or loss in the investee increases or decreases, as applicable, the carrying value of the investment. With respect to GPCC, the company determined that this entity does not represent a variable interest entity and consolidation is not required. In addition, although the company has the ability to exercise significant influence over the joint venture through board representation and voting rights, all significant decisions require the consent of the other investors without regard to economic interest. Subsequent to September 30, 2020, the company sold its remaining interest in GPCC. Refer to Note 17 – Subsequent Events for further discussion. Summarized Financial Information Our equity method investments are summarized in the following tables (in thousands):
|  | Ownership as of September 30, 2020 |  | September 30, 2020 |  | December 31, 2019
Green Plains Cattle Company LLC (1) |  | 50% |  | $ | 69,745 |  | $ | 64,161
Other |  | Various |  |  | 3,818 |  |  | 4,837
Total |  |  |  | $ | 73,563 |  | $ | 68,998
(1)The equity method investment in GPCC is impacted by the effect of deferred gains or losses on cattle sale contracts designated in a cash flow hedge relationship. Pre-tax accumulated other comprehensive loss for GPCC was $10.7 million as of September 30, 2020 compared to pre-tax accumulated other comprehensive loss of $16.2 million as of December 31, 2019. Earnings from equity method investments were as follows:
|  | Three Months Ended ‎September 30, |  | Nine Months Ended ‎September 30,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Green Plains Cattle Company LLC (1) |  | $ | 775 |  | $ | 504 |  | $ | 20,531 |  | $ | 504
All others |  |  | 131 |  |  | 140 |  |  | 386 |  |  | 30
Total income from equity method investments, net of income taxes |  | $ | 906 |  | $ | 644 |  | $ | 20,917 |  | $ | 534
Distributions from equity method investments |  | $ | 13,584 |  | $ | - |  | $ | 27,910 |  | $ | -
Income (loss) from equity method investments, net of distributions |  | $ | (12,678) |  | $ | 644 |  | $ | (6,993) |  | $ | 534
(1)Pre-tax equity method earnings of GPCC were $1.0 million and $27.0 million for the three and nine months ended September 30, 2020, respectively and $0.5 million for both the three and nine months September 30, 2019. GPCC equity method treatment began on September 1, 2019, and as such, the prior year balances above represent balances for the one-month period ending September 30, 2019. The company reports its proportional share of equity method investment income (loss) in the consolidated statements of operations. The company’s share of equity method investees other comprehensive income arising during the period is included in accumulated other comprehensive loss in the accompanying balance sheet. The following table present summarized information of GPCC.
|  | Three Months Ended ‎September 30, |  | Nine Months Ended ‎September 30,
|  | 2020 |  | 2019 (1) |  | 2020 |  | 2019 (1)
Total revenues |  | $ | 257,292 |  | $ | 86,932 |  | $ | 747,824 |  | $ | 86,932
Total operating expenses |  |  | 255,315 |  |  | 85,925 |  |  | 693,753 |  |  | 85,925
Net income |  | $ | 1,977 |  | $ | 1,007 |  | $ | 54,071 |  | $ | 1,007
(1)GPCC equity method treatment began on September 1, 2019, as such balances for the three and nine month periods above represent summarized financials for the one-month period ending September 30, 2019.
|  | September 30, 2020 |  | December 31, 2019
Balance sheet: |  |  |  |  |  |
Current assets |  | $ | 498,868 |  | $ | 516,324
Noncurrent assets |  |  | 70,893 |  |  | 73,922
Current liabilities |  |  | 429,922 |  |  | 461,534
Noncurrent liabilities |  |  | 349 |  |  | 390
Net assets |  | $ | 139,490 |  | $ | 128,322

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.3A-04) -URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration