0001309402-21-000135 | 10-Q | XBRL Viewer

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Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2021	Nov. 01, 2021
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Entity File Number	001-32924
Entity Registrant Name	Green Plains Inc.
Entity Central Index Key	0001309402
Entity Incorporation, State or Country Code	IA
Entity Tax Identification Number	84-1652107
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		53,595,978
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	GPRE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Amendment Flag	false
Entity Address, Address Line One	1811 Aksarben Drive
Entity Address, City or Town	Omaha
Entity Address, State or Province	NE
Entity Address, Postal Zip Code	68106
City Area Code	402
Local Phone Number	884-8700
Entity Shell Company	false

Consolidated Balance Sheets - USD ($)
$ in Thousands

Sep. 30, 2021

Dec. 31, 2020

Current assets

Cash and cash equivalents

$ 589,822

$ 233,860

Restricted cash

131,073

40,950

Accounts receivable, net of allowances of $382 and $143, respectively

90,271

55,568

Income taxes receivable

1,732

661

Inventories

243,207

269,491

Prepaid expenses and other

15,730

16,531

Derivative financial instruments

45,691

25,292

Total current assets

1,117,526

642,353

Property and equipment, net of accumulated depreciation and amortization of $547,599 and $530,194, respectively

842,141

801,690

Operating lease right-of-use assets

66,971

61,883

Other assets

86,566

72,991

Total assets

^[1]

2,113,204

1,578,917

Current liabilities

Accounts payable

112,459

140,058

Accrued and other liabilities

42,731

38,471

Derivative financial instruments

35,401

20,265

Operating lease current liabilities

16,766

14,902

Short-term notes payable and other borrowings

162,470

140,808

Current maturities of long-term debt

34,477

98,052

Total current liabilities

404,304

452,556

Long-term debt

514,434

287,299

Operating lease long-term liabilities

53,050

49,549

Other liabilities

23,798

12,849

Total liabilities

995,586

802,253

Commitments and contingencies (Note 13)

Stockholders’ equity

Common stock, $0.001 par value; 75,000,000 shares authorized; 61,838,598 and 47,470,505 shares issued, and 53,594,142 and 35,657,344 shares outstanding, respectively

Additional paid-in capital

1,067,583

740,889

Retained earnings (deficit)

(5,631)

39,375

Accumulated other comprehensive income (loss)

1,038

(2,172)

Treasury stock, 8,244,456 and 11,813,161 shares, respectively

(91,626)

(131,287)

Total Green Plains stockholders’ equity

971,429

646,852

Noncontrolling interests

146,189

129,812

Total stockholders’ equity

1,117,618

776,664

Total liabilities and stockholders’ equity

$ 2,113,204

$ 1,578,917

[1]	Asset balances by segment exclude intercompany balances.

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Consolidated Balance Sheets [Abstract]
Accounts receivable, allowances	$ 382	$ 143
Property, and equipment, accumulated depreciation and amortization	$ 547,599	$ 530,194
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	61,838,598	47,470,505
Common stock, shares outstanding	53,594,142	35,657,344
Treasury stock, shares	8,244,456	11,813,161

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues
Revenues	$ 746,791	$ 424,062	$ 2,024,849	$ 1,444,955
Costs and expenses
Cost of goods sold (excluding depreciation and amortization expenses reflected below)	730,179	393,933	1,878,820	1,372,057
Operations and maintenance expenses	5,162	6,647	17,153	19,410
Selling, general and administrative expenses	26,022	19,934	72,923	62,090
Loss (gain) on sale of assets, net	1,823	(2,000)	(31,245)	(2,000)
Goodwill impairment				24,091
Depreciation and amortization expenses	28,280	19,753	69,493	57,208
Total costs and expenses	791,466	438,267	2,007,144	1,532,856
Operating income (loss)	(44,675)	(14,205)	17,705	(87,901)
Other income (expense)
Interest income	25	3	496	643
Interest expense	(9,488)	(10,169)	(60,225)	(29,536)
Other, net	(440)	12	(1,680)	862
Total other expense	(9,903)	(10,154)	(61,409)	(28,031)
Loss before income taxes and income from equity method investees	(54,578)	(24,359)	(43,704)	(115,932)
Income tax benefit (expense)	(7)	(7,280)	2,914	48,461
Income from equity method investees, net of income taxes	174	906	517	20,917
Net loss	(54,411)	(30,733)	(40,273)	(46,554)
Net income attributable to noncontrolling interests	5,211	3,753	16,151	12,591
Net loss attributable to Green Plains	$ (59,622)	$ (34,486)	$ (56,424)	$ (59,145)
Earnings per share:
Net loss attributable to Green Plains - basis and diluted	$ (1.18)	$ (1.00)	$ (1.27)	$ (1.71)
Weighted average shares outstanding:
Basic and diluted	50,482	34,629	44,581	34,632
Product [Member]
Revenues
Revenues	$ 745,240	$ 423,027	$ 2,019,006	$ 1,441,248
Service [Member]
Revenues
Revenues	$ 1,551	$ 1,035	$ 5,843	$ 3,707

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Consolidated Statements Of Comprehensive Income [Abstract]
Net loss	$ (54,411)	$ (30,733)	$ (40,273)	$ (46,554)
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on derivatives arising during the period, net of tax benefit (expense) of ($171), $859, ($260) and ($160), respectively	538	(2,696)	820	503
Reclassification of realized losses (gains) on derivatives, net of tax benefit (expense) of $62, $0, ($750) and $1,431, resectively	(194)		2,390	(4,492)
Other comprehensive income (loss), net of tax	344	(2,696)	3,210	(3,989)
Share of equity method investees other comprehensive income (loss) arising during the period, net of tax benefit (expense) of $0, $6,705, $0 and ($1,318), respectively		(21,057)		4,140
Total other comprehensive income (loss), net of tax	344	(23,753)	3,210	151
Comprehensive loss	(54,067)	(54,486)	(37,063)	(46,403)
Comprehensive income attributable to noncontrolling interests	5,211	3,753	16,151	12,591
Comprehensive loss attributable to Green Plains	$ (59,278)	$ (58,239)	$ (53,214)	$ (58,994)

Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Consolidated Statements Of Comprehensive Income [Abstract]
Unrealized gains (losses) on derivatives arising during period, tax benefit (expense)	$ (171)	$ 859	$ (260)	$ (160)
Reclassification of realized losses (gains) on derivatives, tax benefit (expense)	62	0	(750)	1,431
Share of equity method investees other comprehensive income (loss) arising during the period, tax benefit (expense)	$ 0	$ 6,705	$ 0	$ (1,318)

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (40,273)	$ (46,554)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	69,493	57,208
Amortization of debt issuance costs and debt discount	6,957	16,097
Gain on sale of assets, net	(31,245)	(1,405)
Loss on extinguishment of debt	32,645
Goodwill impairment		24,091
Deferred income taxes	(3,008)	(10,569)
Stock-based compensation	3,980	5,720
Income from equity method investees, net of income taxes	(517)	(20,917)
Distribution from equity method investees, net of income taxes		27,910
Other	1,199	18
Changes in operating assets and liabilities before effects of business combinations and dispositions:
Accounts receivable	(33,776)	54,683
Inventories	4,088	68,301
Derivative financial instruments	(2,386)	5,532
Prepaid expenses and other assets	175	2,051
Accounts payable and accrued liabilities	(35,007)	(78,091)
Current income taxes	(1,073)	(26,825)
Other	876	(802)
Net cash provided by (used in) operating activities	(27,872)	76,448
Cash flows from investing activities:
Purchases of property and equipment, net	(123,687)	(85,376)
Proceeds from the sale of assets	87,217
Other investing activities	(7,000)	(4,098)
Net cash used in investing activities	(43,470)	(89,474)
Cash flows from financing activities:
Proceeds from the issuance of long-term debt	367,701	13,000
Payments of principal on long-term debt	(188,706)	(12,933)
Proceeds from short-term borrowings	2,450,416	1,816,821
Payments on short-term borrowings	(2,432,553)	(1,866,526)
Payments on extinguishment of convertible debt	(20,861)
Payments for repurchase of common stock		(11,479)
Payments of cash distributions	(4,187)	(8,281)
Proceeds from issuance of common stock, net	356,011
Payments of loan fees	(9,050)	(3,900)
Payments related to tax withholdings for stock-based compensation	(4,674)	(1,288)
Other financing activities	3,330
Net cash provided by (used in) financing activities	517,427	(74,586)
Net change in cash, cash equivalents and restricted cash	446,085	(87,612)
Cash, cash equivalents and restricted cash, beginning of period	274,810	269,896
Cash, cash equivalents and restricted cash, end of period	720,895	182,284
Reconciliation of total cash, cash equivalents and restricted cash:
Cash and cash equivalents	589,822	150,407
Restricted cash	131,073	31,877
Total cash, cash equivalents and restricted cash	720,895	182,284
Non-cash financing activity:
Exchange of 4.00% convertible notes due 2024	51,000
Exchange of common stock held in treasury stock for 4.00% convertible notes due 2024	39,661
Supplemental investing activities:
Assets disposed of in sale	54,626
Less: liabilities relinquished	(3,706)
Net assets disposed	50,920
Supplemental disclosures of cash flow:
Cash paid (refunded) for income taxes	1,336	(4,533)
Cash paid for interest	25,529	$ 20,325
Cash premium paid for extinguishment of convertible notes	$ 20,861

Consolidated Statements Of Cash Flows (Parenthetical)	Sep. 30, 2021	Jun. 30, 2021	May 18, 2021	Dec. 31, 2020	Jun. 30, 2019
Convertible Notes [Member] \| 4.00% Convertible Notes Due 2024 [Member] \| Corporate Activities [Member]
Debt Instrument [Line Items]
Interest rate, stated percentage	4.00%	4.00%	4.00%	4.00%	4.00%

Basis Of Presentation, Description Of Business And Summary Of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Basis Of Presentation, Description Of Business And Summary Of Significant Accounting Policies [Abstract]

Basis Of Presentation, Description Of Business And Summary Of Significant Accounting Policies

1. BASIS OF PRESENTATION, DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

References to the Company

References to “Green Plains” or the “company” in the consolidated financial statements and in these notes to the consolidated financial statements refer to Green Plains Inc., an Iowa corporation, and its subsidiaries.

Consolidated Financial Statements

The consolidated financial statements include the company’s accounts and all significant intercompany balances and transactions are eliminated. Unconsolidated entities are included in the financial statements on an equity basis. The company owns a 48.9% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. Public investors own the remaining 49.1% limited partner interest in the partnership. The company determined that the limited partners in the partnership with equity at risk lack the power, through voting rights or similar rights, to direct the activities that most significantly impact the partnership’s economic performance; therefore, the partnership is considered a variable interest entity. The company, through its ownership of the general partner interest in the partnership, has the power to direct the activities that most significantly affect economic performance and is obligated to absorb losses and has the right to receive benefits that could be significant to the partnership. Therefore, the company is considered the primary beneficiary and consolidates the partnership in the company’s financial statements. The assets of the partnership cannot be used by the company for general corporate purposes. The partnership’s consolidated total assets as of September 30, 2021 and December 31, 2020, excluding intercompany balances, are $102.1 million and $91.2 million, respectively, and primarily consist of property and equipment, operating lease right-of-use assets and goodwill. The partnership’s consolidated total liabilities as of September 30, 2021 and December 31, 2020, excluding intercompany balances, are $112.6 million and $151.2 million, respectively, which primarily consist of long-term debt as discussed in Note 8 – Debt and operating lease liabilities. The liabilities recognized as a result of consolidating the partnership do not represent additional claims on our general assets.

The company also owns a majority interest in BioProcess Algae, a joint venture formed in 2008, as well as a majority interest in Fluid Quip Technologies, LLC, with their results being consolidated in our consolidated financial statements.

The accompanying unaudited consolidated financial statements are prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Because they do not include all of the information and notes required by GAAP, the consolidated financial statements should be read in conjunction with the company’s annual report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 16, 2021.

The unaudited financial information reflects adjustments, which are, in the opinion of management, necessary for a fair presentation of results of operations, financial position and cash flows for the periods presented. The adjustments are normal and recurring in nature, unless otherwise noted. Interim period results are not necessarily indicative of the results to be expected for the entire year.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications did not affect total revenues, costs and expenses or net income. See Note 8 – Debt and Note 11 – Stockholders’ Equity for further details.

Use of Estimates in the Preparation of Consolidated Financial Statements

The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The company bases its estimates on historical experience and assumptions it believes are proper and reasonable under the circumstances and regularly evaluates the appropriateness of its estimates and assumptions. Actual results could differ from those estimates. Key accounting policies, including but not limited to those relating to revenue recognition, carrying value of intangible assets, operating leases, impairment of long-lived assets and goodwill, derivative financial instruments, accounting for income taxes and assets acquired and liabilities assumed in acquisitions, are impacted significantly by judgments, assumptions and estimates used in the preparation of the consolidated financial statements.

Description of Business

The company operates within four business segments: (1) ethanol production, which includes the production of ethanol, including industrial-grade alcohol, distillers grains, Ultra-High Protein and corn oil, (2) agribusiness and energy services, which includes grain handling and storage, commodity marketing and merchant trading for company-produced and third-party ethanol, distillers grains, corn oil, natural gas and other commodities, (3) food and ingredients, which includes food-grade corn oil and (4) partnership, which includes fuel storage and transportation services. The food and ingredients segment had no activity during the three and nine months ended September 30, 2021 and 2020.

Cash and Cash Equivalents

Cash and cash equivalents includes bank deposits as well as short-term, highly liquid investments with original maturities of three months or less.

Restricted Cash

The company has restricted cash, which can only be used for funding letters of credit, for payment towards a revolving credit agreement, or for capital expenditures as specified in certain credit facility agreements. Restricted cash also includes cash margins and securities pledged to commodity exchange clearinghouses and at times, funds in escrow related to acquisition and disposition activities. To the degree these segregated balances are cash and cash equivalents, they are considered restricted cash on the consolidated balance sheets.

Revenue Recognition

The company recognizes revenue when obligations under the terms of a contract with a customer are satisfied. Generally, this occurs with the transfer of control of products or services. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. Sales, value add, and other taxes the company collects concurrent with revenue-producing activities are excluded from revenue.

Sales of ethanol, distillers grains, corn oil, natural gas and other commodities by the company’s marketing business are recognized when obligations under the terms of a contract with a customer are satisfied. Generally, this occurs with the transfer of control of products or services. Revenues related to marketing for third parties are presented on a gross basis as the company controls the product prior to the sale to the end customer, takes title of the product and has inventory risk. Unearned revenue is recorded for goods in transit when the company has received payment but control has not yet been transferred to the customer. Revenues for receiving, storing, transferring and transporting ethanol and other fuels are recognized when the product is delivered to the customer.

The company routinely enters into physical-delivery energy commodity purchase and sale agreements. At times, the company settles these transactions by transferring its obligations to other counterparties rather than delivering the physical commodity. Energy trading transactions are reported net as a component of revenue. Revenues include net gains or losses from derivatives related to products sold while cost of goods sold includes net gains or losses from derivatives related to commodities purchased. Revenues also include realized gains and losses on related derivative financial instruments and reclassifications of realized gains and losses on cash flow hedges from accumulated other comprehensive income or loss.

Sales of products, including agricultural commodities, are recognized when control of the product is transferred to the customer, which depends on the agreed upon shipment or delivery terms. Revenues related to grain merchandising are presented gross and include shipping and handling, which is also a component of cost of goods sold. Revenues from grain storage are recognized over time as the services are rendered.

Revenues related to the design, engineering and installation of equipment are recognized over the term of the related contracts as equipment is delivered and installed and services are performed.

A substantial portion of the partnership revenues are derived from fixed-fee commercial agreements for storage, terminal or transportation services. The partnership recognizes revenue upon transfer of control of product from its storage tanks and fuel terminals, when railcar volumetric capacity is provided, and as truck transportation services are performed. To the extent shortfalls associated with minimum volume commitments in the previous four quarters continue to exist, volumes in excess of the minimum volume commitment are applied to those shortfalls. Remaining excess volumes generating operating lease revenue are recognized as incurred.

Shipping and Handling Costs

The company accounts for shipping and handling activities related to contracts with customers as costs to fulfill its promise to transfer the associated products. Accordingly, the company records customer payments associated with shipping and handling costs as a component of revenue, and classifies such costs as a component of cost of goods sold.

Cost of Goods Sold

Cost of goods sold includes direct labor, materials, shipping and plant overhead costs. Direct labor includes all compensation and related benefits of non-management personnel involved in ethanol production. Grain purchasing and receiving costs, excluding labor costs for grain buyers and scale operators, are also included in cost of goods sold. Materials include the cost of corn feedstock, denaturant, and process chemicals. Corn feedstock costs include gains and losses on related derivative financial instruments not designated as cash flow hedges, inbound freight charges, inspection costs and transfer costs, as well as reclassifications of gains and losses on cash flow hedges from accumulated other comprehensive income or loss. Plant overhead consists primarily of plant utilities, repairs and maintenance and outbound freight charges. Shipping costs incurred by the company, including railcar costs, are also reflected in cost of goods sold.

The company uses exchange-traded futures and options contracts and forward purchase and sale contracts to attempt to minimize the effect of price changes on ethanol, grain, corn oil and natural gas. Exchange-traded futures and options contracts are valued at quoted market prices and settled predominantly in cash. The company is exposed to loss when counterparties default on forward purchase and sale contracts. Grain inventories held for sale and forward purchase and sale contracts are valued at market prices when available or other market quotes adjusted for basis differences, primarily in transportation, between the exchange-traded market and local market where the terms of the contract are based. Changes in forward purchase contracts and exchange-traded futures and options contracts are recognized as a component of cost of goods sold.

Operations and Maintenance Expenses

In the partnership segment, transportation expenses represent the primary component of operations and maintenance expenses. Transportation expenses include railcar leases, freight and shipping of the company’s ethanol and co-products, as well as costs incurred storing ethanol at destination terminals.

Derivative Financial Instruments

The company uses various derivative financial instruments, including exchange-traded futures and exchange-traded and over-the-counter options contracts, to attempt to minimize risk and the effect of commodity price changes, including, but not limited to, corn, ethanol, natural gas, soybean meal and soybean oil. The company monitors and manages this exposure as part of its overall risk management policy to reduce the adverse effect market volatility may have on its operating results. The company may hedge these commodities as one way to mitigate risk; however, there may be situations when these hedging activities themselves result in losses.

By using derivatives to hedge exposures to changes in commodity prices, the company is exposed to credit and market risk. The company’s exposure to credit risk includes the counterparty’s failure to fulfill its performance obligations under the terms of the derivative contract. The company minimizes its credit risk by entering into transactions with high quality counterparties, limiting the amount of financial exposure it has with each counterparty and monitoring their financial condition. Market risk is the risk that the value of the financial instrument might be adversely affected by a change in commodity prices or interest rates. The company manages market risk by incorporating parameters to monitor exposure within its risk management strategy, which limits the types of derivative instruments and strategies the company can use and the degree of market risk it can take using derivative instruments.

The company evaluates its physical delivery contracts to determine if they qualify for normal purchase or sale exemptions which are expected to be used or sold over a reasonable period in the normal course of business. Contracts that do not meet the normal purchase or sale criteria are recorded at fair value. Changes in fair value are recorded in operating income unless the contracts qualify for, and the company elects, cash flow hedge accounting treatment.

Certain qualifying derivatives related to ethanol production and agribusiness and energy services are designated as cash flow hedges. The company evaluates the derivative instrument to ascertain its effectiveness prior to entering into cash flow hedges. Unrealized gains and losses are reflected in accumulated other comprehensive income or loss until the gain or loss from the underlying hedged transaction is realized and the physical transaction is completed. When it becomes probable a forecasted transaction will not occur, the cash flow hedge treatment is discontinued, which affects earnings. These derivative financial instruments are recognized in current assets or current liabilities at fair value.

At times, the company hedges its exposure to changes in inventory values and designates qualifying derivatives as fair value hedges. The carrying amount of the hedged inventory is adjusted in the current period for changes in fair value. Estimated fair values carried at market are based on exchange-quoted prices, adjusted as appropriate for regional location basis values, which represent differences in local markets, including transportation as well as quality or grade differences. Basis values are generally determined using inputs from broker quotations or other market transactions. However, a portion of the value may be derived using unobservable inputs. Ineffectiveness of the hedges is recognized in the current period to the extent the change in fair value of the inventory is not offset by the change in fair value of the derivative.

Recent Accounting Pronouncements

On January 1, 2021, the company early adopted the amended guidance in ASC 470-20, Debt - Debt with Conversion and Other Options and ASC 815-40, Derivatives and Hedging - Contracts in Entity’s Own Equity - Accounting for Convertible Instruments and Contracts in an Equity’s Own Equity. The adoption of this guidance resulted in a $49.5 million decrease in additional paid-in capital, an $11.4 million increase in retained earnings and a $38.1 million increase in long-term debt, which included a $39.4 million increase in debt principal offset by a $1.3 million increase in debt issuance costs, resulting from amounts previously bifurcated to equity being reclassified to debt. See Note 8 – Debt and Note 11 – Stockholders’ Equity for further details.

In March 2020, the FASB issued amended guidance in ASC 848, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and a subsequent update in January 2021, which provides optional expedients and exceptions to U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the LIBOR and other interbank offered rates to alternative reference rates. The expedients and exceptions provided by the amended guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The guidance is effective upon issuance and to be applied prospectively from any date beginning March 12, 2020 through December 31, 2022. The amended guidance is not expected to have a material impact on the company’s consolidated financial statements.

In December 2019, the FASB issued amended guidance in ASC 740, Income Taxes - Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted. The amended guidance is not expected to have a material impact on the company’s consolidated financial statements.

Revenue

9 Months Ended

Sep. 30, 2021

Revenue [Abstract]

Revenue

2. REVENUE

Revenue Recognition

Revenue is recognized when obligations under the terms of a contract with a customer are satisfied. Generally, this occurs with the transfer of control of products or services. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. Sales, value add, and other taxes the company collects concurrent with revenue-producing activities are excluded from revenue.

Revenue by Source

The following tables disaggregate revenue by major source (in thousands):


	Three Months Ended September 30, 2021
	Ethanol Production		Agribusiness & Energy Services		Partnership		Eliminations		Total
Revenues:
Revenues from contracts with customers under ASC 606:
Ethanol	$	-	$	-	$	-	$	-	$	-
Distillers grains		6,936		-		-		-		6,936
Corn oil		-		-		-		-		-
Service revenues		520		-		1,019		-		1,539
Other		8,633		9,597		-		-		18,230
Intersegment revenues		-		-		1,969		(1,969)		-
Total revenues from contracts with customers		16,089		9,597		2,988		(1,969)		26,705
Revenues from contracts accounted for as derivatives under ASC 815 ⁽¹⁾:
Ethanol		455,843		109,552		-		-		565,395
Distillers grains		77,008		9,699		-		-		86,707
Corn oil		35,363		11,222		-		-		46,585
Grain		-		13,505		-		-		13,505
Other		4,046		3,837		-		-		7,883
Intersegment revenues		-		5,362		-		(5,362)		-
Total revenues from contracts accounted for as derivatives		572,260		153,177		-		(5,362)		720,075
Leasing revenues under ASC 842 ⁽²⁾:		-		-		16,263		(16,252)		11
Total Revenues	$	588,349	$	162,774	$	19,251	$	(23,583)	$	746,791


	Nine Months Ended September 30, 2021
	Ethanol Production		Agribusiness & Energy Services		Partnership		Eliminations		Total
Revenues:
Revenues from contracts with customers under ASC 606:
Ethanol	$	-	$	-	$	-	$	-	$	-
Distillers grains		14,974		-		-		-		14,974
Corn oil		-		-		-		-		-
Service revenues		2,545		-		3,235		-		5,780
Other		25,062		12,640		-		-		37,702
Intersegment revenues		-		-		6,147		(6,147)		-
Total revenues from contracts with customers		42,581		12,640		9,382		(6,147)		58,456
Revenues from contracts accounted for as derivatives under ASC 815 ⁽¹⁾:
Ethanol		1,159,020		324,395		-		-		1,483,415
Distillers grains		268,167		27,953		-		-		296,120
Corn oil		75,252		23,808		-		-		99,060
Grain		-		36,473		-		-		36,473
Other		22,324		28,939		-		-		51,263
Intersegment revenues		-		15,997		-		(15,997)		-
Total revenues from contracts accounted for as derivatives		1,524,763		457,565		-		(15,997)		1,966,331
Leasing revenues under ASC 842 ⁽²⁾:		-		-		49,976		(49,914)		62
Total Revenues	$	1,567,344	$	470,205	$	59,358	$	(72,058)	$	2,024,849

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	Three Months Ended September 30, 2020
	Ethanol Production		Agribusiness & Energy Services		Partnership		Eliminations		Total
Revenues:
Revenues from contracts with customers under ASC 606:
Ethanol	$	-	$	-	$	-	$	-	$	-
Distillers grains		4,095		-		-		-		4,095
Corn oil		-		2,938		-		-		2,938
Service revenues		-		-		920		-		920
Other		66		1,408		-		-		1,474
Intersegment revenues		25		-		2,289		(2,314)		-
Total revenues from contracts with customers		4,186		4,346		3,209		(2,314)		9,427
Revenues from contracts accounted for as derivatives under ASC 815 ⁽¹⁾:
Ethanol		263,390		56,895		-		-		320,285
Distillers grains		51,692		10,696		-		-		62,388
Corn oil		12,433		5,805		-		-		18,238
Grain