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What changed in Andersons, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Andersons, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+190 added−196 removedSource: 10-K (2025-02-19) vs 10-K (2024-02-21)

Top changes in Andersons, Inc.'s 2024 10-K

190 paragraphs added · 196 removed · 140 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeAdditionally, several in-person trainings are led by internal staff. • Health and Wellness : The Company partners with a wellness vendor to offer a comprehensive healthy lifestyles program to employees and their spouses. The program uses rewards and incentives to encourage participants to take the necessary steps to manage their health and wellness goals.
Biggest changeThe program uses rewards and incentives to encourage participants to take the necessary steps to manage their health and wellness goals. The program offers a prediabetes program, personal e-coaching with a licensed health professional and financial wellness webinars. • Compensation and Benefits : The Company offers market competitive employee compensation and benefits programs.
Nutrient & Industrial The Nutrient & Industrial segment (formerly the Plant Nutrient Segment) is a manufacturer, distributor and retailer of agricultural and related plant nutrients, liquid industrial products, corncob-based products, pelleted lime and gypsum products, and various turf fertilizer, pesticide and herbicide products.
Nutrient & Industrial The Nutrient & Industrial segment is a manufacturer, distributor and retailer of agricultural and related plant nutrients, liquid industrial products, corncob-based products, pelleted lime and gypsum products, and various turf fertilizer, pesticide and herbicide products.
The Andersons, Inc. | 2023 Form 10-K | 3 Table of Contents Government Regulation The Company, like other companies engaged in similar businesses, is subject to a multitude of federal, state, foreign and local environmental protection laws and regulations including, but not limited to, laws and regulations relating to air quality, water quality, pesticides and hazardous materials.
The Andersons, Inc. | 2024 Form 10-K | 3 Table of Contents Government Regulation The Company, like other companies engaged in similar businesses, is subject to a multitude of federal, state, foreign and local environmental protection laws and regulations including, but not limited to, laws and regulations relating to air quality, water quality, pesticides and hazardous materials.
The provisions of these various regulations could require modifications of certain of the Company's existing facilities and could restrict the expansion of future facilities or significantly increase the cost of operations. Compliance with environmental laws and regulations did not materially affect the Company's earnings or competitive position in 2023.
The provisions of these various regulations could require modifications of certain of the Company's existing facilities and could restrict the expansion of future facilities or significantly increase the cost of operations. Compliance with environmental laws and regulations did not materially affect the Company's earnings or competitive position in 2024.
The Andersons, Inc. | 2023 Form 10-K | 2 Table of Contents Human Capital Resources and Management As of December 31, 2023, the Company had a total of 2,334 employees across its Trade, Renewables and Nutrient & Industrial segments and Corporate Services function.
The Andersons, Inc. | 2024 Form 10-K | 2 Table of Contents Human Capital Resources and Management As of December 31, 2024, the Company had a total of 2,299 employees across its Trade, Renewables and Nutrient & Industrial segments and Corporate Services function.
The segment also operates a merchandising and trade portfolio of ethanol, ethanol co-products and other biofuels, such as renewable feedstocks. The Andersons, Inc. | 2023 Form 10-K | 1 Table of Contents The Company owns a 50.1% interest in The Andersons Marathon Holdings LLC ("TAMH") and Marathon Petroleum Corporation ("Marathon") owns the remaining 49.9% interest.
The segment also operates a merchandising and trade portfolio of ethanol, ethanol co-products and other biofuels, such as renewable feedstocks. The Andersons, Inc. | 2024 Form 10-K | 1 Table of Contents The Company owns a 50.1% interest in The Andersons Marathon Holdings LLC ("TAMH") and MPC Investments, LLC ("Marathon") owns the remaining 49.9% interest.
This total was comprised of 982 salary, 1,277 hourly and 75 seasonal employees who conducted work at 122 locations across the United States, Canada, United Kingdom, Switzerland, Mexico, Romania and Singapore.
This total was comprised of 969 salary, 1,255 hourly and 75 seasonal employees who conducted work at 120 locations across the United States, Canada, United Kingdom, Switzerland, Mexico, Romania and Singapore.
The wholesale nutrients business formulates, stores and distributes dry and liquid agricultural nutrients, pelleted lime, gypsum and soil amendments. The major nutrient products are typically bought and sold as commodities. The farm centers offer a variety of essential crop nutrients, crop protection chemicals and seed products in addition to application and agronomic services to commercial and family farmers.
The major nutrient products are typically bought and sold as commodities. The farm centers offer a variety of essential crop nutrients, crop protection chemicals and seed products in addition to application and agronomic services to commercial and family farmers.
It also offers a learning management system which houses numerous online courses, videos, audiobooks and podcasts that are available to all employees on demand and provides for thousands of continuing education credits for various professional certifications.
It also offers a learning management system which houses numerous online courses, videos, audiobooks and podcasts that are available to all employees on demand and provides for thousands of continuing education credits for various professional certifications. • Health and Wellness : The Company partners with a wellness vendor to offer a comprehensive healthy lifestyles program to employees and their spouses.
Sales of agricultural nutrients and turf related products are heaviest in the spring and fall. The segment is organized into the three divisions listed below: Ag Supply Chain - The Ag Supply Chain division provides wholesale nutrients and farm services focused primarily in the Eastern Grain belt.
Sales of agricultural nutrients and turf related products are heaviest in the spring and fall. The segment is organized into the three divisions listed below: Ag Supply Chain - The Ag Supply Chain division provides wholesale nutrients and farm services. The wholesale nutrients business formulates, stores and distributes dry and liquid agricultural nutrients, pelleted lime, gypsum and soil amendments.
The program offers a prediabetes program, personal e-coaching with a licensed health professional and financial wellness webinars. • Compensation and Benefits : The Company offers market competitive employee compensation and benefits programs. Benefits include health care benefits, dental and vision benefits, disability and life insurance coverages and other a la carte voluntary benefit offerings.
Benefits include health care benefits, dental and vision benefits, disability and life insurance coverages and other a la carte voluntary benefit offerings.
The results include expenses and benefits not allocated to the operating segments and other elimination and consolidation adjustments.
Other The Company's “Other” activities include corporate income, a small corporate venture fund and the 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.
Specialty Liquids - The Specialty Liquids division manufactures and distributes a broad range of fertilizers, micronutrients, and soil amendments. The business has a diverse portfolio of specialty products which support more sustainable farming practices and command higher margins.
Specialty Liquids - The Specialty Liquids division manufactures and distributes a broad range of fertilizers, micronutrients, and soil amendments. The business has a diverse portfolio of specialty products that command higher margins. The division is also a manufacturer and distributor of industrial products throughout the U.S. and Puerto Rico including nitrogen reagents, calcium nitrate, deicers, and dust abatement products.
Removed
The division is also a manufacturer and distributor of industrial products throughout the U.S. and Puerto Rico including nitrogen reagents, calcium nitrate, deicers, and dust abatement products. Other The Company's “Other” activities include corporate income, a small corporate venture fund and the cost for functions that provide support and services to the operating segments.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAs a result, ethanol prices will be influenced by the supply and demand for gasoline and oil and our future results of operations and financial position may be adversely affected if gasoline and oil demand or prices decline substantially.
Biggest changeOur future results of operations and financial position may be adversely affected if gasoline and oil demand or prices decline substantially. Potash, phosphate and nitrogen - Raw materials used by the Nutrient & Industrial business include potash, phosphate and nitrogen, for which prices can be volatile and are driven by global and local supply and demand factors.
Furthermore, increases in natural gas prices or changes in our natural gas costs relative to natural gas costs paid by competitors may adversely affect future results of operations and financial position.
Furthermore, increases in natural gas prices or changes in our natural gas costs relative to natural gas costs paid by competitors may adversely affect future results of operations and our financial position.
Factors that may be considered a change in circumstances indicating that the carrying value of our goodwill, amortizable intangible assets and long-lived assets may not be recoverable include prolonged declines in stock price, market capitalization or cash flows, and slower growth rates in our industry.
Factors that may be considered a change in circumstances indicating that the carrying value of our goodwill, amortizable intangible assets and long-lived assets may not be recoverable include prolonged declines in our stock price, market capitalization or cash flows, and slower growth rates in our industry.
Additionally, we have a diverse customer base, so we have the ability to divert cargo in transit to another counterparty, country, or region to limit the exposure of a material financial loss. Our business involves considerable safety risks. Significant unexpected costs and liabilities would have an adverse effect on our profitability and overall financial position.
Additionally, we have a diverse customer base and have the ability to divert cargo in transit to another counterparty, country, or region to limit the exposure of a material financial loss. Our business involves considerable safety risks. Significant unexpected costs and liabilities would have an adverse effect on our profitability and overall financial position.
In addition, we may not realize the anticipated benefits of an acquisition and they may not generate the anticipated financial results. Additional risks may include the inability to effectively integrate the operations, products, technologies and personnel of the acquired companies. The inability to maintain uniform standards, controls, procedures and policies would also negatively impact operations.
In addition, we may not realize the anticipated benefits and synergies of an acquisition and they may not generate the anticipated financial results. Additional risks may include the inability to effectively integrate the operations, products, technologies and personnel of the acquired companies. The inability to maintain uniform standards, controls, procedures and policies would also negatively impact operations.
Consequently, changes in existing and future government or trade association polices may restrict our ability to do business and have an adverse impact on the Company's financial results. The Andersons, Inc. | 2023 Form 10-K | 6 Table of Contents We are required to carry significant amounts of inventory across all of our businesses.
Consequently, changes in existing and future government or trade association polices may restrict our ability to do business and have an adverse impact on the Company's financial results. The Andersons, Inc. | 2024 Form 10-K | 6 Table of Contents We are required to carry significant amounts of inventory across all of our businesses.
Any claims raised in legal and regulatory proceedings, whether with or without merit, could be time consuming and expensive to defend and could divert management’s attention and resources. Additionally, the outcome of legal and regulatory proceedings may differ from our expectations because the outcomes of these proceedings are often difficult to reliably predict.
Any claims raised in legal and regulatory proceedings, whether with or without merit, could be time consuming, expensive to defend, damage our reputation and could divert management’s attention and resources. Additionally, the outcome of legal and regulatory proceedings may differ from our expectations because the outcomes of these proceedings are often difficult to reliably predict.
Technological advances in agriculture, such as genetically engineered seeds that resist disease and insects, or that meet certain nutritional requirements, could also affect the demand for our crop nutrients and crop protection products. Either of these factors could render some of our inventory obsolete or reduce its value.
Technological advances in agriculture, such as genetically engineered seeds that resist disease and insects, or that meet certain nutritional requirements, could also affect the demand for our crop nutrients and crop protection products. Any of these factors could render some of our inventory obsolete or reduce its value.
The Andersons, Inc. | 2023 Form 10-K | 4 Table of Contents Risks Related to our Business and Industry Our business is affected by the supply and demand of commodities and is sensitive to factors outside of our control. Adverse price movements could negatively affect our profitability and results of operations.
The Andersons, Inc. | 2024 Form 10-K | 4 Table of Contents Risks Related to our Business and Industry Our business is affected by the supply and demand of commodities and is sensitive to factors outside of our control. Adverse price movements could negatively affect our profitability and results of operations.
The Andersons, Inc. | 2023 Form 10-K | 7 Table of Contents We face increasing exposure to country risk in countries that face financial, political, and economic unrest through unsecured credit, inventory, forward contract risk or payment origination that could adversely affect our future results of operations, financial position, and cash flows.
The Andersons, Inc. | 2024 Form 10-K | 7 Table of Contents We face exposure to country risk in countries that face financial, political, and economic unrest through unsecured credit, inventory, forward contract risk or payment origination that could adversely affect our future results of operations, financial position, and cash flows.
Production levels, markets and prices of the commodities we merchandise can be affected by U.S. government programs, which include acreage controls and price support programs administered by the USDA and required levels of ethanol in gasoline through the Renewable Fuel Standards as administered by the Environmental Protection Agency ("EPA").
Production levels, markets and prices of the commodities we merchandise can be affected by U.S. government programs, which include acreage controls and price support programs administered by the USDA and required levels of ethanol in gasoline through the Renewable Fuel Standards as administered by the EPA.
The Andersons, Inc. | 2023 Form 10-K | 8 Table of Contents Additionally, the potential physical impacts of climate change are uncertain and may vary by region.
The Andersons, Inc. | 2024 Form 10-K | 8 Table of Contents Additionally, the potential physical impacts of climate change are uncertain and may vary by region.
Additionally, there could be a rapid increase in interest rates creating difficulty for our counterparties to access U.S. dollars making it difficult to collect accounts receivable timely. We have engaged third parties to provide assessments of country risk and business ratings driven by economic indicators. We also have established counterparty credit limits and various monitoring agreements.
Additionally, there could be a rapid increase in interest rates making it difficult for our counterparties to access U.S. dollars to allow us to collect on accounts receivable timely. We have engaged third parties to provide assessments of country risk and business ratings driven by economic indicators. We also have established counterparty credit limits and various monitoring agreements.
The imposition of new tariffs or uncertainty around future tariff levels can cause significant fluctuations in the futures and basis levels of agricultural commodities, impacting our earnings. We cannot predict the effects that future trade policy or the terms of any negotiated trade agreements and their impact on our business.
The imposition of new tariffs or uncertainty around future tariff levels can cause significant fluctuations in the futures and basis levels of agricultural commodities and/or increased raw material costs in our nutrients business, impacting our earnings. We cannot predict the effects that future trade policy or the terms of any negotiated trade agreements and their impact on our business.
These market conditions often are affected by factors beyond our control such as higher prices resulting from colder than average weather and overall economic conditions. Significant disruptions in the supply of natural gas could impact the operations of the Company's facilities.
The prices for and availability of natural gas are subject to market conditions. These market conditions often are affected by factors beyond our control such as higher prices resulting from colder than average weather and overall economic conditions. Significant disruptions in the supply of natural gas could impact operations at the Company's facilities.
Other examples of government policies that can have an impact on our business include tariffs, taxes, duties, subsidies, import and export restrictions, outright embargoes and price controls on agricultural commodities.
Other examples of government policies that can have an impact on our business include the Inflation Reduction Act, tariffs, taxes, duties, subsidies, import and export restrictions, outright embargoes and price controls on agricultural commodities.
A future adverse ruling, settlement or unfavorable development could result in charges that could have a material adverse effect on our results of operations in any particular period. In accordance with customary practice, we maintain insurance against some, but not all, of these potential claims.
A future adverse ruling, settlement or unfavorable development could result in damage to our reputation and charges that could have a material adverse impact on our results of operations in any particular period. In accordance with customary practice, we maintain insurance against some, but not all, of these potential claims.
If any significant judgment or claim is not fully insured or indemnified against, it could have a material adverse impact on our business, financial condition and results of operations. Item 1B. Unresolved Staff Comments The Company has no unresolved staff comments.
If any significant judgment or claim is not fully insured or indemnified against, it could have a material adverse impact on our business, financial condition and results of operations. The Andersons, Inc. | 2024 Form 10-K | 12 Table of Contents Item 1B. Unresolved Staff Comments The Company has no unresolved staff comments.
Gasoline and oil - We market ethanol as a fuel additive to reduce vehicle emissions from gasoline, as an octane enhancer to improve the octane rating of gasoline with which it is blended and as a substitute for petroleum-based gasoline.
Gasoline and oil - We market ethanol as a fuel additive to reduce vehicle emissions from gasoline, as an octane enhancer to improve the octane rating of gasoline with which it is blended and as a substitute for petroleum-based gasoline. As a result, ethanol prices will be influenced by the supply and demand for gasoline and oil.
The Andersons, Inc. | 2023 Form 10-K | 10 Table of Contents We are in the process of reviewing our system roadmaps, to help standardize processes and support growth initiatives. This will likely result in potential system implementations as part of our ongoing information technology transformation strategy, and we plan to implement these systems throughout relevant parts of our business.
We are in the process of reviewing our systems roadmap, to help standardize processes and support growth initiatives. This will likely result in potential system implementations as part of our ongoing information technology transformation strategy, and we plan to implement these systems throughout relevant parts of our business.
Nutrient & Industrial - Our Nutrient & Industrial business manufactures certain agricultural nutrients and uses potentially hazardous materials. All products containing pesticides, fungicides and herbicides must be registered with the EPA and state regulatory bodies before they can be sold. The inability to obtain or the cancellation of such registrations could have an adverse impact on our business.
All products containing pesticides, fungicides and herbicides must be registered with the EPA and state regulatory bodies before they can be sold. The inability to obtain or the cancellation of such registrations could have an adverse impact on our business.
The Andersons, Inc. | 2023 Form 10-K | 11 Table of Contents We are subject to various legal and regulatory proceedings, including litigation in the ordinary course of business, and uninsured judgments or a rise in insurance premiums may adversely impact our business, financial condition and results of operations.
We are subject to various legal and regulatory proceedings, including litigation in the ordinary course of business, and uninsured judgments or a rise in insurance premiums may adversely impact our business, financial condition and results of operations.
In certain areas in which we trade (both origination and destination) country risk is more prevalent given the country’s political and/or economic situations like Russia’s invasion of Ukraine. The addition of purchases and sales of grain in vessel sized quantities to support the Switzerland-based businesses increases the size and potential severity of our country risk.
In certain areas in which we trade (both origination and destination) country risk is more prevalent given the country’s political and/or economic situations like Russia’s invasion of Ukraine. With the purchases and sales of grain in vessel sized quantities within the international merchandising business increases the size and potential severity of our country risk.
In our Nutrient & Industrial business, changes in the supply and demand of these commodities can also affect the value of inventories that we hold, as well as the price of raw materials as we are unable to effectively hedge these commodities.
In our Nutrient & Industrial business, changes in the supply and demand of these commodities can also affect the value of inventories that we hold, as well as the price of raw materials as we are unable to effectively hedge these commodities. Increased inventory and raw material costs would decrease our profit margins and adversely affect our results of operations.
With our 2021 launch of the Company’s Switzerland merchandising business, we have increased our international supply chain operations and exposure. With the increased international presence comes additional country risk through trade flows around the globe with direct exposure to the counterparty, via contract mark-to-market exposure, unsecured accounts receivable or inventory in the country.
With our international merchandising business we have additional country risk through trade flows around the globe with direct exposure to the counterparty, via contract mark-to-market exposure, unsecured accounts receivable or inventory in the country.
Trade disputes can lead to the implementing of tariffs on commodities in which we merchandise or otherwise use in our operations. This can lead to significant volatility in commodity prices, disruptions in historical trade flows and shifts in planting patterns in the Company's geographic footprint, which would present challenges and uncertainties for our business.
This can lead to significant volatility in commodity prices, disruptions in historical trade flows and shifts in planting patterns in the Company's geographic footprint, which would present challenges and uncertainties for our business.
Certain of our long-term borrowings include provisions that require minimum levels of working capital and equity and impose limitations on additional debt. Our ability to satisfy these provisions can be affected by events beyond our control, such as the demand for and the fluctuating price of commodities.
Certain of our long-term borrowings include provisions that require minimum levels of working capital and equity and impose limitations on additional debt. Our ability to satisfy these provisions can be affected by events beyond our control. Noncompliance with these provisions could result in default and acceleration of debt payments.
In contrast, reductions in the price of these commodities may create lower of cost or net realizable value adjustments to inventories. The Andersons, Inc. | 2023 Form 10-K | 5 Table of Contents Some of our business segments operate in highly regulated industries. Changes in government regulations or trade association policies could adversely affect our results of operations.
The Andersons, Inc. | 2024 Form 10-K | 5 Table of Contents Some of our business segments operate in highly regulated industries. Changes in government regulations or trade association policies could adversely affect our results of operations.
In addition, we may also have difficulty, from time to time, in physically sourcing corn on economical terms due to supply shortages. High costs or shortages could require us to suspend ethanol operations until corn is available on economical terms, which would have an adverse effect on operating results.
High costs or shortages could require us to suspend ethanol operations until corn is available on economical terms, which would have an adverse impact on operating results.
As a result, an increase in the price of corn in the absence of a corresponding increase in petroleum-based fuel prices will typically decrease ethanol margins thus adversely affecting financial results in the Renewables segment. At certain levels, the relationship between corn and petroleum-based fuel prices may make ethanol uneconomical to produce for fuel markets.
Corn - The principal raw material used to produce ethanol and co-products is corn. As a result, an increase in the price of corn, particularly corn basis, in the absence of a corresponding increase in petroleum-based fuel prices will typically decrease ethanol margins thus adversely affecting financial results in the Renewables segment.
A significant adverse change in commodity prices could cause a counterparty of one or more of our derivative contracts to not perform on its obligation.
In addition, the Company uses exchange traded and, to a lesser degree, over-the-counter contracts to further reduce volatility in changing commodity prices. A significant adverse change in commodity prices could cause a counterparty of one or more of our derivative contracts to not perform on its obligation.
Noncompliance with these provisions could result in default and acceleration of long-term debt payments. We face increasing competition and pricing pressure from other companies in our industries. If we are unable to compete effectively with these companies, our sales and profit margins would decrease, and our earnings and cash flows would be adversely affected.
We face significant competition and pricing pressure from other companies in our industries. If we are unable to compete effectively with these companies, our sales and profit margins would decrease, and our earnings and cash flows would be adversely affected. The markets for our products in each of our business segments are highly competitive.
Because a portion of our commodity sales are to exporters, the imposition of export restrictions and other foreign countries' regulations could limit our sales opportunities and create additional credit risk associated with export brokers if shipments are rejected at their destination. International trade disputes can adversely affect agricultural commodity trade flows by limiting or disrupting trade between countries or regions.
Because a portion of our commodity sales are to exporters, the imposition of export restrictions and other foreign countries' regulations could limit our sales opportunities and create additional credit risk associated with export brokers if shipments are rejected at their destination. Nutrient & Industrial - Our Nutrient & Industrial business manufactures certain agricultural nutrients and uses potentially hazardous materials.
If there are large movements in the commodities market, we could be required to post significant levels of margin deposits, which would impact our liquidity.
If there are large movements in commodity markets, we could be required to post significant levels of margin deposits, which would impact our liquidity. There is no assurance that the efforts we have taken to mitigate the impact of the volatility of the prices of commodities upon which we rely will be successful.
Natural gas - We rely on third parties for our supply of natural gas, which is consumed in the drying of wet grain, manufacturing of certain lawn products, pelleted lime and gypsum, and manufacturing of ethanol. The prices for and availability of natural gas are subject to market conditions.
Any sudden change in the price of these commodities could have an adverse impact on our business and results of operations. Natural gas - We rely on third parties for our supply of natural gas, which is consumed in the drying of wet grain, manufacturing of certain lawn products, pelleted lime and gypsum, and manufacturing of ethanol.
The markets for our products in each of our business segments are highly competitive. While we have substantial operations in certain of the regions where we operate, some of our competitors are significantly larger, compete in wider markets, have greater purchasing power, and have considerably larger financial resources.
While we have substantial operations in certain of the regions where we operate, some of our competitors are significantly larger, compete in wider markets, have greater purchasing power, and have considerably larger financial resources. We also may enter into new markets where our brand is not recognized and in which we do not have an established customer base.
If our strategies prove ineffective, our business could be adversely affected. The Company's information technology systems may impose limitations or failures which may affect the Company's ability to conduct its business. The Company's information technology systems, some of which are dependent on services provided by third parties, provide critical data connectivity, information and services for internal and external users.
The Company's information technology systems, some of which are dependent on services provided by third parties, provide critical data connectivity, information and services for internal and external users.
The Company, through our Enterprise Risk Management ("ERM") program and other efforts, is actively focused on strategic goals to expand responsible practices to reduce environmental risks while ensuring compliance with evolving laws and regulations.
As a agricultural company, we assess the potential impacts of our business by environmental risks including climate change, greenhouse gas emissions and other environmental issues. The Company, through our Enterprise Risk Management ("ERM") program and other efforts, is actively focused on implementing responsible practices to reduce environmental risks while complying with evolving laws and regulations.
We also may enter into new markets where our brand is not recognized and in which we do not have an established customer base. Competitive pressures in all of our businesses could affect the price of, and customer demand for, our products, thereby negatively impacting our profit margins and resulting in a loss of market share.
Competitive pressures in all of our businesses could affect the price of, and customer demand for, our products, thereby negatively impacting our profit margins and resulting in a loss of market share. Our Trade and Renewables businesses use derivative contracts to reduce the impact of volatility in the commodity markets.
The significance and relative effect of these factors on the price of corn is difficult to predict. Any event that tends to negatively affect the supply of corn, such as adverse weather or crop disease, could increase corn prices and adversely impact income.
Any event that tends to negatively affect the supply of corn, such as adverse weather or crop disease, could increase corn prices and adversely impact operating results. In addition, we may also have difficulty, from time to time, in physically sourcing corn on economical terms due to supply shortages.
The price of corn is influenced by weather conditions and other factors affecting crop yields, shifts in acreage allocated to corn versus other major crops and general economic and regulatory factors. These factors include government policies and subsidies with respect to agriculture and international trade, and global and local supply and demand.
These factors include government policies and subsidies with respect to agriculture and international trade, and global and local supply and demand. The significance and relative impact of these factors on the price of corn is difficult to predict.
A significant number of purchases and sales within the Trade and Renewables segments are made through forward contracting, much of which includes a natural back-to-back hedging relationship. In addition, the Company uses exchange traded and, to a lesser degree, over-the-counter contracts to further reduce volatility in changing commodity prices.
Non-performance by the counterparties to those contracts could adversely affect our future results of operations and financial position. A significant number of purchases and sales within the Trade and Renewables segments are made through forward contracting, much of which includes a natural back-to-back hedging relationship.
We are at risk of cyber-incidents or other security breaches that could undermine our ability to operate effectively. Our security measures may be breached due to employee error, malfeasance, or otherwise.
Our security measures may be breached due to employee error, malfeasance, or otherwise.
If we are unable to properly assess these risks and meet our ESG reporting goals and metrics for Scope 1, 2 and 3 greenhouse gas emissions, or if our efforts are considered to be inadequate, then stakeholders, the industry, and investors might perceive that we are not responding appropriately and responsibly to the growing concern.
We have participated with customers in sustainable sourcing pilot projects which provides farming operations greater visibility into their sustainability activities. If we are unable to properly assess these risks and meet our appropriate disclosure requirements, or if our efforts are considered to be inadequate, then stakeholders, the industry, and investors might perceive that we are not responding appropriately and responsibly.
If we are unable to motivate and retain employees, we may not be able to maximize productivity and effectively operate our facilities. Further, our long-term success depends on effective succession planning across all levels of management and operations.
Failure to effectively identify key employees and ensure appropriate training and smooth transitions could adversely impact our ability to execute our business strategies and operations. If we are unable to motivate and retain employees, we may not be able to maximize productivity and effectively operate our facilities.
The Andersons, Inc. | 2023 Form 10-K | 9 Table of Contents Our business depends on our ability to attract and retain talented employees. Our success as a Company is dependent on hiring and retaining highly skilled employees with diverse backgrounds and experiences.
The Andersons, Inc. | 2024 Form 10-K | 9 Table of Contents Our business depends on our ability to successfully manage productivity improvements and ongoing organizational change, including our ability to attract and retain talented employees. Our financial projections assume certain ongoing productivity improvements and cost savings, including staffing adjustments as well as employee departures.
Potash, phosphate and nitrogen - Raw materials used by the Nutrient & Industrial business include potash, phosphate and nitrogen, for which prices can be volatile and are driven by global and local supply and demand factors. Significant increases in the price of these commodities may result in lower customer demand and higher than optimal inventory levels.
Significant increases in the price of these commodities may result in lower customer demand and higher than optimal inventory levels. In contrast, reductions in the price of these commodities may create lower of cost or net realizable value adjustments to inventories.
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Increased costs of inventory and prices of raw material would decrease our profit margins and adversely affect our results of operations. Corn - The principal raw material used to produce ethanol and co-products is corn.
Added
At certain levels, the relationship between corn and petroleum-based fuel prices may make ethanol uneconomical to produce for fuel markets. The price of corn is influenced by weather conditions and other factors affecting crop yields, shifts in acreage allocated to corn versus other major crops and general economic and regulatory factors.
Removed
There is no assurance that the efforts we have taken to mitigate the impact of the volatility of the prices of commodities upon which we rely will be successful and any sudden change in the price of these commodities could have an adverse effect on our business and results of operations.
Added
Regulations of financial markets and instruments, including the Dodd-Frank Act and the Commodity Exchange Act may lead to additional risks and costs, which could adversely affect the Company’s futures commission merchant business and its agricultural commodity risk management practices.
Removed
Our Trade and Renewables businesses use derivative contracts to reduce the impact of volatility in the commodity markets. Non-performance by the counterparties to those contracts could adversely affect our future results of operations and financial position.
Added
Future government policies may adversely affect the supply of, demand for, and prices of the Company’s products; adversely affect the Company’s ability to deploy adequate hedging programs; restrict the Company’s ability to do business in its existing and target markets; and adversely affect the Company’s revenues and operating results.
Removed
Failure to effectively identify key employees and ensure appropriate training and smooth transitions could adversely impact our ability to execute our business strategies and operations. Compliance with evolving environmental, social and corporate governance ("ESG") regulations including climate change may impact our reputation, increase our operating costs, and reduce the value of our assets and products.
Added
International trade disputes can adversely affect agricultural commodity and nutrient trade flows by limiting or disrupting trade between countries or regions. Trade disputes can lead to the implementing of tariffs on commodities in which we merchandise or otherwise use in our operations.
Removed
There is an increased focus on environmental, social and corporate governance regulations for the industry. As a Company, we assess the potential impacts of our business on environmental risks including climate change, carbon emissions, physical and transition risks, along with other environmental issues.
Added
Under the new U.S. administration, there may be a heightened risk of new or increased tariffs and trade disputes and there is currently significant uncertainty about how it may impact our business and industry.
Removed
For example, through working with third parties such as Supplier Leadership on Climate Transition, we have reported Scope 1 and 2 greenhouse gases emissions in our annual Sustainability Report, and we are working with third parties to develop Scope 3 data.
Added
Failure to deliver these planned productivity improvements and cost savings, while continuing to invest in business growth, could adversely impact our results of operations and cash flows.
Removed
We have been participating with customers in pilot sustainable sourcing projects as well as looking to participate in Field to Market which provides farming operation analytics to customers to create greater visibility into supply chain and sustainability efforts.
Added
Additionally, changes in our senior management have recently occurred, and successfully executing organizational change, management transitions at leadership levels of the Company and motivation and retention of key employees, is critical to our business success.
Added
This includes developing and retaining organizational capabilities in key growth markets where the depth of skilled or experienced employees may be limited and competition for these resources is intense, as well as continuing the development and execution of strong leadership succession plans.
Added
Factors that may affect our ability to attract and retain sufficient numbers of qualified employees include employee morale, our reputation, competition from other employers and availability of qualified individuals. Compliance with evolving regulations regarding disclosure of emissions and metrics and/or climate change may impact our reputation, increase our operating costs, and reduce the value of our assets and products.
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If our strategies prove ineffective, our business could be adversely affected. The Andersons, Inc. | 2024 Form 10-K | 10 Table of Contents The Company's information technology systems may impose limitations or failures which may affect the Company's ability to conduct its business.
Added
Data privacy regulations continue to evolve, and non-compliance with such regulations, including as a result of adoption of emerging technologies, such as artificial intelligence, could subject the Company to legal claims or proceedings, potential regulatory fines and penalties and damage to our reputation.
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These factors may adversely impact our business, results of operations, and financial condition, as well as our competitive position. The Andersons, Inc. | 2024 Form 10-K | 11 Table of Contents We are at risk of cyber-incidents or other security breaches that could undermine our ability to operate effectively.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe internal business owners of hosted applications are required to document user access reviews at least annually and receive a System and Organization Controls ("SOC") 1 or SOC 2 report from the vendor. If a third-party vendor is not able to provide a SOC 1 or SOC 2 report, management will take additional steps to assess the vendor’s cybersecurity preparedness.
Biggest changeWe also require employees in certain roles to complete additional role-based, specialized cybersecurity trainings. The internal business owners of hosted applications are required to document user access reviews at least annually and receive a System and Organization Controls ("SOC") 1 or SOC 2 report from the vendor.
The Company’s Vice President of Information Technology regularly addresses the Audit Committee, typically on a quarterly basis, regarding our cybersecurity and data privacy progress to the NIST CSF standards along with briefing the Committee on any cybersecurity incidents that were determined to have a moderate or higher impact on the business, even if immaterial to the Company as a whole.
The CIO regularly addresses the Audit Committee, typically on a quarterly basis, regarding our cybersecurity and data privacy progress to the NIST CSF standards along with briefing the Committee on any cybersecurity incidents that were determined to have a moderate or higher impact on the business, even if immaterial to the Company as a whole.
The Senior Manager of Information Security is responsible for assessing and managing the Company’s cybersecurity program, informs the Vice President of Information Technology and other senior management as appropriate regarding the prevention, detection, mitigation, and remediation of cybersecurity incidents and supervises such efforts.
The Company’s Director of Information Security ("CISO"), reporting to the Chief Information Officer ("CIO"), is the leader of the Company’s cybersecurity team. The CISO is responsible for assessing and managing the Company’s cybersecurity program, informs the CIO and other senior management as appropriate regarding the prevention, detection, mitigation, and remediation of cybersecurity incidents and supervises such efforts.
On an annual basis, management assesses the top risks facing the enterprise through the Company’s ERM process. Cybersecurity related risks are included in this annual function and to the extent the ERM process assigns a heightened risk to cybersecurity, risk owners are named to address the severity, likelihood, and controls in place to mitigate these risks.
Cybersecurity related risks are included in this annual function and to the extent the ERM process assigns a heightened risk to cybersecurity, risk owners are named to address the severity, likelihood, and controls in place to mitigate these risks. Upon the conclusion of the ERM process, management’s assessment is then presented to the Board of Directors.
Management also periodically evaluates the experience of the Company’s entire cybersecurity team to ensure adequate coverage across all eight key knowledge domains identified by the Certified Information Systems Security Professional certification.
Our CISO and CIO have decades of collective experience managing information technology and cybersecurity functions, both at the Company and in prior positions at large, Fortune 500 global businesses. Management also periodically evaluates the experience of the Company’s entire cybersecurity team to ensure adequate coverage across all eight key knowledge domains identified by the Certified Information Systems Security Professional certification.
The Andersons, Inc. | 2023 Form 10-K | 12 Table of Contents Employees outside of the cybersecurity team also have a role in our cybersecurity defenses and they are engaged in a culture supportive of security protocols, which management believes improves the Company’s cybersecurity.
Employees outside of the cybersecurity team also have a role in our cybersecurity defenses and they are engaged in a culture supportive of security protocols, which management believes improves the Company’s cybersecurity. All employees are required to complete cybersecurity trainings annually and have access to more frequent cybersecurity trainings through online trainings.
The Audit Committee of the Board of Directors oversees the Company’s cybersecurity program and the steps taken by management to monitor and mitigate cybersecurity risks.
If a third-party vendor is not able to provide a SOC 1 or SOC 2 report, management will take additional steps to assess the vendor’s cybersecurity preparedness. The Audit Committee of the Board of Directors oversees the Company’s cybersecurity program and the steps taken by management to monitor and mitigate cybersecurity risks.
Determination of when to notify senior leadership and the Audit Committee is made by the Vice President of Information Technology in consultation with other members of senior leadership as needed.
Determination of when to notify senior leadership and the Audit Committee is made by the CIO in consultation with other members of senior leadership as needed. Depending on the nature and severity of the incident, disclosure can be handled either through scheduled quarterly reporting to the Audit Committee or as an immediate disclosure to the Chair of the Audit Committee.
Removed
The Company’s Senior Manager of Information Security, reporting to the Vice President of Information Technology, is the leader of the Company’s cybersecurity team.
Added
The Andersons, Inc. | 2024 Form 10-K | 13 Table of Contents Assessing, identifying, and managing cybersecurity related risks are integrated into the Company-wide ERM process. On an annual basis, management assesses the top risks facing the enterprise through the Company’s ERM process.
Removed
Our Senior Manager of Information Security and Vice President of Information Technology have decades of collective experience in managing information technology and cybersecurity functions, both at the Company and in prior positions.
Removed
All employees are required to complete cybersecurity trainings annually and have access to more frequent cybersecurity trainings through online trainings. We also require employees in certain roles to complete additional role-based, specialized cybersecurity trainings.
Removed
Depending on the nature and severity of the incident, disclosure can be handled either through scheduled quarterly reporting to the Audit Committee or as an immediate disclosure to the Chair of the Audit Committee. Assessing, identifying, and managing cybersecurity related risks are integrated into the Company-wide ERM process.
Removed
Upon the conclusion of the ERM process, management’s assessment is then presented to the Board of Directors.
Removed
The Andersons, Inc. | 2023 Form 10-K | 13 Table of Contents

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeTrade Renewables Nutrient & Industrial (in thousands) Grain Storage Nameplate Capacity Dry Fertilizer Storage Liquid Fertilizer Storage Location (bushels) (gallons) (tons) (tons) Canada 21,598 — — — Idaho 18,840 — — — Indiana 16,800 110,000 135 138 Iowa — 55,000 — 67 Louisiana 23,962 — — — Michigan 25,459 130,000 75 46 Nebraska 11,424 — — 40 Ohio 41,078 110,000 168 77 Wisconsin — — 25 78 Other 9,237 — 57 67 168,398 405,000 460 513 The Trade facilities are mostly concrete and steel tanks, with some flat storage buildings.
Biggest changeTrade Renewables Nutrient & Industrial (in thousands) Grain Storage Nameplate Capacity Dry Fertilizer Storage Liquid Fertilizer Storage Location (bushels) (gallons) (tons) (tons) Canada 21,715 — — — Idaho 18,840 — — — Indiana 16,800 110,000 135 134 Iowa — 55,000 — 68 Kansas 78,068 — 35 36 Louisiana 23,276 — — — Michigan 25,459 130,000 75 46 Nebraska 10,716 — — 40 Ohio 43,578 110,000 166 78 Texas 35,267 — 3 16 Wisconsin — — 25 80 Other 17,521 — 57 65 291,240 405,000 496 563 The Trade facilities are mostly concrete and steel tanks, with some flat storage buildings.
The Company also owns grain inspection buildings and dryers, maintenance buildings and truck scales and dumps. Approximately 81% of the total storage capacity noted above, which includes temporary pile storage, is owned, while the remaining capacity is leased from third parties.
The Company also owns grain inspection buildings and dryers, maintenance buildings and truck scales and dumps. Approximately 73% of the total storage capacity noted above, which includes temporary pile storage, is owned, while the remaining capacity is leased from third parties.
The Renewables properties are four ethanol plants owned under the TAMH investment that is consolidated in the Company's Consolidated Financial Statements. The Nutrient & Industrial properties consist mainly of fertilizer warehouse and formulation and packaging facilities for dry and liquid fertilizers. The Company owns substantially all of the facilities noted above.
The Andersons, Inc. | 2024 Form 10-K | 14 Table of Contents The Nutrient & Industrial properties consist mainly of fertilizer warehouse and formulation and packaging facilities for dry and liquid fertilizers. The Company owns substantially all of the facilities noted above.
Added
The Renewables properties are four ethanol plants owned under the TAMH investment that is consolidated in the Company's Consolidated Financial Statements. These plants include grain storage tanks with a storage capacity of 14 million bushels that are predominantly used for the storage of corn as a raw material for the ethanol production process.
Added
On November 1, 2024, the Company entered into a definitive purchase agreement for a 65% ownership interest in Skyland Grain, LLC ("Skyland") for $85.0 million, which resulted in the consolidation of Skyland’s results in the Company's Consolidated Financial Statements in both the Trade and Nutrient & Industrial segments.
Added
Skyland operates grain storage and handling facilities in Kansas, Colorado, Oklahoma, and Texas. This transaction is the main driver behind the increase in the Company's grain and fertilizer storage capacity from the prior year.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changePurchases of Equity Securities by the Issuer and Affiliated Purchasers Period Total Number of Shares Purchased (1) 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 (2) October 2023 — $ — — $ 85,532,211 November 2023 — — — 85,532,211 December 2023 — — — 85,532,211 Total — $ — — $ 85,532,211 (1) During the three months ended December 31, 2023, the Company acquired shares of common stock held by employees who tendered owned shares to satisfy tax withholding obligations along with common stock repurchased as a part of the Company's Repurchase Plan.
Biggest changeDividends paid from January 2023 to January 2025 are as follows: Payment Date Amount January 20, 2023 $0.185 April 24, 2023 $0.185 July 24, 2023 $0.185 October 20, 2023 $0.185 January 22, 2024 $0.190 April 22, 2024 $0.190 July 22, 2024 $0.190 October 22, 2024 $0.190 January 23, 2025 $0.195 Purchases of Equity Securities by the Issuer and Affiliated Purchasers Period Total Number of Shares Purchased (1) 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 (2) October 2024 73 $ 49.25 — $ 100,000,000 November 2024 — — — 100,000,000 December 2024 57,636 39.81 57,636 97,705,231 Total 57,709 $ 39.83 57,636 $ 97,705,231 (1) During the three months ended December 31, 2024, the Company acquired shares of common stock held by employees who tendered owned shares to satisfy tax withholding obligations along with common stock repurchased as a part of the Company's Repurchase Plan.
The indices reflect the year-end market value of an investment in the stock of each company in the index, including additional shares assumed to have been acquired with cash dividends, if any. The Peer Group Index, weighted for market capitalization, includes the following companies: Archer-Daniels-Midland Co. Green Plains Inc. Alto Ingredients, Inc. Ingredion Incorporated Bunge Global SA Nutrien Ltd.
The indices reflect the year-end market value of an investment in the stock of each company in the index, including additional shares assumed to have been acquired with cash dividends, if any. The Peer Group Index, weighted for market capitalization, includes the following companies: Archer-Daniels-Midland Co. Green Plains Inc. Alto Ingredients, Inc. The Mosaic Company Bunge Global SA Nutrien Ltd.
The Andersons, Inc. | 2023 Form 10-K | 15 Table of Contents Performance Graph The graph below compares the total shareholder return on the Company's Common Shares to the cumulative total return for the Russell 3000 Index and a Peer Group Index.
The Andersons, Inc. | 2024 Form 10-K | 16 Table of Contents Performance Graph The graph below compares the total shareholder return on the Company's Common Shares to the cumulative total return for the Russell 3000 Index and a Peer Group Index.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Common Shares of The Andersons, Inc. trade on the Nasdaq Global Select Market under the symbol “ANDE”. Shareholders At February 9, 2024, there were 434 shareholders of record and approximately 29,227 shareholders for whom security firms acted as nominees.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Common Shares of The Andersons, Inc. trade on the Nasdaq Global Select Market under the symbol “ANDE”. Shareholders At February 7, 2025, there were 417 shareholders of record and approximately 29,574 shareholders for whom security firms acted as nominees.
(2) 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 December 31, 2023, approximately $14.5 million of the $100 million available to repurchase shares had been utilized.
(2) As of August 15, 2024, the Company was authorized to purchase up to $100 million of the Company's common stock (the "Repurchase Plan") on or before August 15, 2027. As of December 31, 2024, approximately $2.3 million of the $100 million available to repurchase shares had been utilized.
The graph assumes a $100 investment in The Andersons, Inc. Common Shares on December 31, 2018, and also assumes investments of $100 in the Russell 3000 Index and Peer Group Index, respectively, on December 31 of the first year of the graph.
Common Shares on December 31, 2019, and also assumes investments of $100 in the Russell 3000 Index and Peer Group Index, respectively, on December 31 of the first year of the graph. The value of these investments as of the following calendar year-ends is shown in the table below the graph.
Dividends The Company has declared and paid consecutive quarterly dividends since its first year of trading in 1996.
Dividends The Company has declared and paid consecutive quarterly dividends since its first year of trading in 1996. While the Company's intends to continue to pay a comparable quarterly cash dividend for the foreseeable future, dividends are subject to approval from the Board of Directors.
Removed
Dividends paid from January 2022 to January 2024 are as follows: Payment Date Amount January 21, 2022 $0.180 April 22, 2022 $0.180 July 22, 2022 $0.180 October 21, 2022 $0.180 January 20, 2023 $0.185 April 24, 2023 $0.185 July 24, 2023 $0.185 October 20, 2023 $0.185 January 22, 2024 $0.190 While the Company's objective is to pay a quarterly cash dividend, dividends are subject to approval from the Board of Directors.
Added
Darling Ingredient Rex American RS The prior peer group consists of Archer-Daniels-Midland Co., Alto Ingredients, Inc., Bunge Global SA, Green Plains Inc., Ingredion Incorporated and Nutrien Ltd. In 2024, the peer group was reassessed to maintain a group that closely aligns with our core business structure and product lines. The graph assumes a $100 investment in The Andersons, Inc.
Removed
The value of these investments as of the following calendar year-ends is shown in the table below the graph.
Added
Base Period Cumulative Returns 2019 2020 2021 2022 2023 2024 The Andersons, Inc. $ 100.00 $ 100.74 $ 162.73 $ 150.06 $ 250.55 $ 178.37 Russell 3000 Index $ 100.00 $ 120.89 $ 151.91 $ 122.73 $ 154.59 $ 191.39 Peer Group Index $ 100.00 $ 115.75 $ 171.37 $ 194.61 $ 162.10 $ 122.13 Prior Peer Group $ 100.00 $ 108.31 $ 159.50 $ 184.58 $ 156.85 $ 126.77 The Andersons, Inc. | 2024 Form 10-K | 17 Table of Contents Item 6.
Removed
Base Period Cumulative Returns 2018 2019 2020 2021 2022 2023 The Andersons, Inc. $ 100.00 $ 86.80 $ 87.44 $ 141.25 $ 130.25 $ 217.47 Russell 3000 Index $ 100.00 $ 131.02 $ 158.39 $ 199.03 $ 160.80 $ 202.54 Peer Group Index $ 100.00 $ 110.27 $ 119.44 $ 175.89 $ 203.54 $ 172.96 The Andersons, Inc. | 2023 Form 10-K | 16 Table of Contents

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

57 edited+32 added−34 removed24 unchanged
Biggest changeYear Ended December 31, 2023 (in thousands) Trade Renewables Nutrient & Industrial Other Total Sales and merchandising revenues $ 10,426,083 $ 3,380,632 $ 943,397 $ — $ 14,750,112 Cost of sales and merchandising revenues 10,016,133 3,178,235 810,381 — 14,004,749 Gross profit 409,950 202,397 133,016 — 745,363 Operating, administrative and general expenses 308,470 32,737 103,342 47,711 492,260 Asset impairment — 87,156 — — 87,156 Interest expense (income) 35,234 6,385 7,016 (1,768) 46,867 Other income, net 29,988 15,056 2,391 3,048 50,483 Income (loss) before income taxes from continuing operations 96,234 91,175 25,049 (42,895) 169,563 Income before income taxes attributable to the noncontrolling interests — 31,339 — — 31,339 Non-GAAP Income (loss) before income taxes attributable to the Company from continuing operations $ 96,234 $ 59,836 $ 25,049 $ (42,895) $ 138,224 Year Ended December 31, 2022 (in thousands) Trade Renewables Nutrient & Industrial Other Total Sales and merchandising revenues $ 13,047,537 $ 3,178,539 $ 1,099,308 $ — $ 17,325,384 Cost of sales and merchandising revenues 12,639,830 3,051,544 949,846 — 16,641,220 Gross profit 407,707 126,995 149,462 — 684,164 Operating, administrative and general expenses 273,592 30,730 106,003 47,231 457,556 Asset impairment 9,000 — — — 9,000 Interest expense (income) 42,551 8,775 7,298 (1,775) 56,849 Other income (expense), net 12,661 20,731 3,001 (2,570) 33,823 Income (loss) before income taxes from continuing operations 95,225 108,221 39,162 (48,026) 194,582 Income before income taxes attributable to the noncontrolling interests — 35,899 — — 35,899 Non-GAAP Income (loss) before income taxes attributable to the Company from continuing operations $ 95,225 $ 72,322 $ 39,162 $ (48,026) $ 158,683 The Company uses Non-GAAP Income (loss) before income taxes attributable to the Company from continuing operations, a non-GAAP financial measure as defined by the Securities and Exchange Commission, to evaluate the Company’s financial performance.
Biggest changeYear Ended December 31, 2024 (in thousands) Trade Renewables Nutrient & Industrial Other Total Sales and merchandising revenues $ 7,622,077 $ 2,802,330 $ 833,141 $ — $ 11,257,548 Cost of sales and merchandising revenues 7,218,395 2,633,179 712,048 — 10,563,622 Gross profit 403,682 169,151 121,093 — 693,926 Operating, administrative and general expenses 316,390 35,493 103,238 48,499 503,620 Interest expense (income) 24,587 2,841 6,311 (1,979) 31,760 Other income (expense), net 28,728 8,678 6,444 (1,639) 42,211 Income (loss) before income taxes from continuing operations 91,433 139,495 17,988 (48,159) 200,757 Income (loss) before income taxes attributable to the noncontrolling interests 1,018 56,615 (945) — 56,688 Non-GAAP Income (loss) before income taxes attributable to the Company from continuing operations $ 90,415 $ 82,880 $ 18,933 $ (48,159) $ 144,069 Year Ended December 31, 2023 (in thousands) Trade Renewables Nutrient & Industrial Other Total Sales and merchandising revenues $ 10,426,083 $ 3,380,632 $ 943,397 $ — $ 14,750,112 Cost of sales and merchandising revenues 10,016,133 3,178,235 810,381 — 14,004,749 Gross profit 409,950 202,397 133,016 — 745,363 Operating, administrative and general expenses 308,470 32,737 103,342 47,711 492,260 Asset impairment — 87,156 — — 87,156 Interest expense (income) 35,234 6,385 7,016 (1,768) 46,867 Other income, net 29,988 15,056 2,391 3,048 50,483 Income (loss) before income taxes from continuing operations 96,234 91,175 25,049 (42,895) 169,563 Income before income taxes attributable to the noncontrolling interests — 31,339 — — 31,339 Non-GAAP Income (loss) before income taxes attributable to the Company from continuing operations $ 96,234 $ 59,836 $ 25,049 $ (42,895) $ 138,224 The Company uses Non-GAAP Income (loss) before income taxes attributable to the Company from continuing operations, a non-GAAP financial measure as defined by the Securities and Exchange Commission, to evaluate the Company’s financial performance.
Asset impairment charges increased by $87.2 million from the prior year as the Company recorded an impairment charge related to ELEMENT in the first quarter of 2023, as 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.
Asset impairment charges decreased by $87.2 million from the prior year as the Company recorded an impairment charge related to ELEMENT in the first quarter of 2023, as 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 December 31, 2023, the Company had standby letters of credit outstanding of $3.3 million. Critical Accounting Estimates The process of preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Management evaluates these estimates and assumptions on an ongoing basis.
At December 31, 2024, the Company had standby letters of credit outstanding of $3.8 million. Critical Accounting Estimates The process of preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Management evaluates these estimates and assumptions on an ongoing basis.
The Company's subsidiary partnership returns are under federal tax examination by the Internal Revenue Service ("IRS") for tax years 2015 through 2018. 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 Company and its subsidiary partnership returns are under federal tax examination by the Internal Revenue Service ("IRS") for tax years 2018 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 $7.6 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.
The resolution of these examinations could change our unrecognized tax benefits and favorably impact income tax expense by a range of $3.3 million to $14.2 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.
The Andersons, Inc. | 2023 Form 10-K | 24 Table of Contents Readily Marketable Inventories and Derivative Contracts Readily Marketable Inventories ("RMI") are stated at their net realizable value, which approximates fair value based on their commodity characteristics, widely available markets, and pricing mechanisms.
The Andersons, Inc. | 2024 Form 10-K | 26 Table of Contents Readily Marketable Inventories and Derivative Contracts Readily Marketable Inventories ("RMI") are stated at their net realizable value, which approximates fair value based on their commodity characteristics, widely available markets, and pricing mechanisms.
Obligations under the retiree healthcare programs are not fixed commitments and will vary depending on multiple factors, including the level of participant utilization and inflation. Our estimates of postretirement payments have considered recent payment trends and actuarial assumptions. As of December 31, 2023, the Company had outstanding benefit obligations of $17.3 million, with $1.2 million payable within 12 months.
Obligations under the retiree healthcare programs are not fixed commitments and will vary depending on multiple factors, including the level of participant utilization and inflation. Our estimates of postretirement payments have considered recent payment trends and actuarial assumptions. As of December 31, 2024, the Company had outstanding benefit obligations of $15.9 million, with $1.3 million payable within 12 months.
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. Management is currently reviewing the Pillar Two legislation in our relevant jurisdictions to determine the potential impact to the Company's effective tax rate.
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 in our relevant jurisdictions is immaterial to the Company's 2024 effective tax rate.
See Note 6 to the Consolidated Financial Statements for additional information. Off-Balance Sheet Transactions During the periods presented we did not have, nor do we currently have, any off-balance sheet transactions as defined under SEC rules, except as follows: The Company may issue standby letters of credit through banking institutions.
See Note 6 to the Consolidated Financial Statements for additional information. Off-Balance Sheet Transactions During the periods presented we did not have, nor do we currently have, any off-balance sheet transactions as defined under SEC rules, with the exception of standby letters of credit through banking institutions.
During the year ended December 31, 2023, the Company evaluated goodwill for impairment using a quantitative assessment in three reporting units and using a qualitative assessment in one reporting unit. The quantitative review for impairment takes into account our estimates of future cash flows, as well as a market based approach.
During the year ended December 31, 2024, the Company evaluated goodwill for impairment using a quantitative assessment in two reporting units and a qualitative assessment in one reporting unit. The quantitative review for impairment takes into account an income approach using estimates of future cash flows, as well as a market based approach.
Agricultural inventories on hand were 127.6 million and 129.7 million bushels at December 31, 2023, and December 31, 2022, respectively. These bushels consist of inventory held at company-owned or leased facilities, transload inventory, in-transit inventory, and third-party held inventory.
Agricultural inventories on hand were 174.2 million and 127.6 million bushels at December 31, 2024, and December 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.
The Andersons, Inc. | 2023 Form 10-K | 19 Table of Contents Management believes that Non-GAAP Income (loss) before income taxes attributable to the Company from continuing operations is a useful measure of the Company’s performance as it provides investors additional information about the Company's operations allowing better evaluation of underlying business performance and better period-to-period comparability.
Management believes that Non-GAAP Income (loss) before income taxes attributable to the Company from continuing operations is a useful measure of the Company’s performance as it provides investors additional information about the Company's operations allowing better evaluation of underlying business performance and better period-to-period comparability.
The difference between the 21.8% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily attributable to state and local income taxes and changes in unrecognized tax benefits offset by the effect of non-controlling interest and foreign tax credits. In 2022, the Company recorded Income tax expense from continuing operations of $39.6 million.
The difference between the 21.8% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily attributable to state and local income taxes and changes in unrecognized tax benefits offset by the effect of non-controlling interest and foreign tax credits.
The Andersons, Inc. | 2023 Form 10-K | 18 Table of Contents Results for Fiscal 2022 compared to Fiscal 2021 For comparisons of the Company's consolidated and segment results of operations and consolidated cash flows for the fiscal years ended December 31, 2022, to December 31, 2021, refer to Part II, Item 7.
Results for Fiscal 2023 compared to Fiscal 2022 For comparisons of the Company's consolidated and segment results of operations and consolidated cash flows for the fiscal years ended December 31, 2023, to December 31, 2022, refer to Part II, Item 7.
The Company's effective rate for 2023 was 21.8% on Income before income taxes from continuing operations of $169.6 million.
In 2023, the Company recorded Income tax expense from continuing operations of $37.0 million. The Company’s effective rate for 2023 was 21.8% on Income before income taxes from continuing operations of $169.6 million.
The Company paid $25.4 million in dividends in 2023 compared to $24.6 million in 2022. The Company paid $0.185 per common share for the dividends paid in January, April, July and October 2023, and $0.180 per common share for the dividends paid in January, April, July and October 2022.
The Company paid $26.3 million in dividends in 2024 compared to $25.4 million in 2023. The Company paid $0.190 per common share for the dividends paid in January, April, July and October 2024, and $0.185 per common share for the dividends paid in January, April, July and October 2023.
Tons of product sold were as follows: Year Ended December 31, (in thousands) 2023 2022 Ag Supply Chain 1,376 1,238 Specialty Liquids 397 415 Engineered Granules 165 188 Total tons 1,938 1,841 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.
The Andersons, Inc. | 2024 Form 10-K | 19 Table of Contents Tons of product sold were as follows: Year Ended December 31, (in thousands) 2024 2023 Ag Supply Chain 1,288 1,376 Specialty Liquids 370 397 Engineered Granules 207 165 Total tons 1,865 1,938 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 chemicals and bulk nitrogen, phosphorus, and potassium.
On December 14, 2023, the Company declared a cash dividend of $0.190 per common share, payable on January 22, 2024, to shareholders of record on January 2, 2024. Certain of our long-term borrowings include covenants that, among other things, impose minimum levels of working capital and a minimum ratio of owner's equity.
On December 12, 2024, the Company declared a cash dividend of $0.195 per common share, payable on January 23, 2025, to shareholders of record on January 2, 2025. 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 December 31, 2023. In addition, certain of our long-term borrowings are collateralized by first mortgages on various facilities.
The Company is in compliance with all covenants as of December 31, 2024. In addition, certain of our long-term borrowings are collateralized by first mortgages on various facilities. The Company is typically in a net short-term borrowing position in the first two quarters of the year.
This measure is not intended to replace or be an alternative to Income (loss) before income taxes from continuing operations, the most directly comparable amount reported under GAAP, which is also presented in the table above. Comparison of 2023 with 2022 Trade Operating results for the Trade segment were consistent with the prior year results.
This measure is not intended to replace or be an alternative to Income (loss) before income taxes from continuing operations, the most directly comparable amount reported under GAAP, which is also presented in the table above.
Volumes shipped were as follows: Year Ended December 31, (in thousands) 2023 2022 Ethanol (gallons shipped) 774,550 771,142 E-85 (gallons shipped) 42,270 38,980 Vegetable Oil (pounds shipped) (a) 1,263,924 790,218 Dried Distillers Grain (tons shipped) (b) 2,052 1,836 (a) Includes corn oil, soybean oil, and other fats, oils, and greases.
Volumes shipped were as follows: Year Ended December 31, (in thousands) 2024 2023 Ethanol (gallons shipped) 793,554 774,550 E-85 (gallons shipped) 47,073 42,270 Vegetable oils (pounds shipped) (a) 1,634,213 1,263,924 Dried distillers grains (tons shipped) (b) 2,451 2,052 (a) Includes corn oil, soybean oil, and other fats, oils, and greases.
As of December 31, 2023, the Company was party to borrowing arrangements with a syndicate of banks that provide a total borrowing capacity of $1,863.9 million. There was $1,817.5 million available for borrowing at December 31, 2023.
As of December 31, 2024, the Company was party to borrowing arrangements with a syndicate of banks that provide a total borrowing capacity of $2,161.7 million. There was $1,991.3 million available for borrowing at December 31, 2024.
The Andersons, Inc. | 2023 Form 10-K | 25 Table of Contents
The Andersons, Inc. | 2024 Form 10-K | 27 Table of Contents
While in the current year the Company's cash on hand exceeds total debt, typically, its highest borrowing occurs in the late winter and early spring due to seasonal inventory requirements in the fertilizer and grain businesses. At December 31, 2023, the Company had total available liquidity of $2,461.4 million comprised of cash and cash equivalents and unused lines of credit.
The Company's highest levels of borrowing typically occur in the late winter and early spring due to seasonal inventory requirements in the fertilizer and grain businesses. At December 31, 2024, the Company had total available liquidity of $2,553.0 million comprised of cash and cash equivalents and unused lines of credit.
Conversely, in periods of declining prices, the Company would receive a return of cash. Management believes the sources of liquidity will be adequate to fund operations, capital expenditures and payments of dividends in the foreseeable future.
Management believes the sources of liquidity will be adequate to fund operations, capital expenditures and payments of dividends in the foreseeable future.
See Note 5 to the Consolidated Financial Statements for additional information. Postretirement Healthcare Program The Company has a postretirement health care benefit plan that covers substantially all of its full-time employees hired prior to January 1, 2003.
As of December 31, 2024, the Company had forward purchase contracts of $2,638.8 million, with $2,568.2 million payable within 12 months. See Note 5 to the Consolidated Financial Statements for additional information. Postretirement Healthcare Program The Company has a postretirement health care benefit plan that covers substantially all of its full-time employees hired prior to January 1, 2003.
Sources and Uses of Cash in 2023 Compared to 2022 Year Ended (in thousands) December 31, 2023 December 31, 2022 Net cash provided by operating activities $ 946,750 $ 287,117 Net cash used in investing activities (153,879) (52,902) Net cash used in financing activities (263,993) (334,730) Operating Activities and Liquidity Operating activities provided cash of $946.8 million in 2023 compared to $287.1 million in 2022.
Sources and Uses of Cash in 2024 Compared to 2023 Year Ended (in thousands) December 31, 2024 December 31, 2023 Net cash provided by operating activities $ 331,506 $ 946,750 Net cash used in investing activities (163,074) (153,879) Net cash used in financing activities (250,359) (263,993) Operating Activities and Liquidity Operating activities provided cash of $331.5 million in 2024 compared to $946.8 million in 2023.
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 Arrangements Net cash used in financing activities was $264.0 million in 2023, compared to $334.7 million used in 2022.
We expect to invest approximately $175 million to $200 million in property, plant and equipment in 2025; less than 50% of which will be reinvested back into our current facilities. Financing Activities Net cash used in financing activities was $250.4 million in 2024, compared to $264.0 million used in 2023.
The difference between the 20.4% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily attributable to the tax benefit generated from federal research and development credits, foreign tax credits and the effect of non-controlling interest offset by state and local income taxes, nondeductible compensation, and changes in unrecognized tax benefits.
The difference between the 15.0% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily attributable to the tax impact of non-controlling interest and U.S. federal tax credits offset by state and local income taxes, tax impacts of foreign operations, and nondeductible compensation.
As a result, changes in 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 operating results were consistent with the prior year as the segment continued to capitalize on strong agriculture fundamentals.
As a result, changes in 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.
Contractual Obligations Long-term Debt As of December 31, 2023, the Company had total outstanding long-term debt with both floating and fixed rates of varying maturities for an aggregate principal amount outstanding of $593.6 million. $27.6 million of the outstanding principal of the long-term debt is payable within 12 months. See Note 4 to the Consolidated Financial Statements for additional information.
Contractual Obligations Long-term Debt As of December 31, 2024, the Company had total outstanding long-term debt with both floating and fixed rates of varying maturities for an aggregate principal amount outstanding of $646.8 million, of which, $36.1 million of the outstanding principal of the long-term debt is payable within 12 months.
Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 23, 2023. Operating Results The following discussion focuses on the operating results as shown in the Consolidated Statements of Operations with a separate discussion by segment.
Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 21, 2024.
Other Results improved by $5.1 million from the prior year. This improvement from the prior year was primarily driven by a $4.8 million revaluation gain of a cost method investment. Income Taxes In 2023, the Company recorded Income tax expense from continuing operations of $37.0 million.
The Andersons, Inc. | 2024 Form 10-K | 22 Table of Contents Other Results decreased by $5.3 million and was primarily driven by a $4.8 million revaluation gain of a cost method investment in the prior year. Income Taxes In 2024, the Company recorded Income tax expense from continuing operations of $30.1 million.
The Andersons, Inc. | 2023 Form 10-K | 21 Table of Contents Liquidity and Capital Resources Working Capital At December 31, 2023, the Company had working capital of $1,170.6 million, an increase of $226.0 million from the prior year.
The Andersons, Inc. | 2024 Form 10-K | 23 Table of Contents Liquidity and Capital Resources Working Capital At December 31, 2024, the Company had working capital of $1,119.1 million, a decrease of $51.5 million from the prior year.
The Company’s effective rate for 2022 was 20.4% on Income before income taxes from continuing operations of $194.6 million.
The Company's effective rate for 2024 was 15.0% on Income before income taxes from continuing operations of $200.8 million.
Future interest payments associated with the long-term debt total $192.5 million, with $36.6 million payable within 12 months. See Note 4 to the Consolidated Financial Statements for additional information. The Andersons, Inc. | 2023 Form 10-K | 23 Table of Contents Operating Leases The Company has lease arrangements for certain equipment and facilities, including grain facilities, fertilizer facilities and equipment.
See Note 4 to the Consolidated Financial Statements for additional information. The Andersons, Inc. | 2024 Form 10-K | 25 Table of Contents Future interest payments associated with the long-term debt total $162.2 million, with $36.3 million payable within 12 months. See Note 4 to the Consolidated Financial Statements for additional information.
Our estimates of future cash flows are based upon a number of assumptions including operating costs, life of the assets, potential disposition proceeds, budgets and long-range plans. The market based approach compares results of public companies that reflect economic conditions and risks that are similar to the Company to calculate an estimated enterprise value.
Our estimates of future cash flows are based upon a number of assumptions including: operating costs, life of the assets, potential disposition proceeds, budgets and long-range plans.
Capital expenditures of $150.4 million for 2023 on property, plant and equipment and capitalized software includes: Trade - $49.7 million; Renewables - $54.5 million; Nutrient & Industrial - $42.5 million; and $3.6 million in Other.
Capital expenditures of $149.2 million for 2024 on property, plant and equipment and capitalized software includes: Trade - $59.2 million; Renewables - $49.8 million; Nutrient & Industrial - $36.1 million; and $4.0 million in Other.
(b) DDG tons shipped converts wet tons to a dry ton equivalent amount. Nutrient & Industrial The Nutrient & Industrial segment's 2023 operating results decreased from the strong prior year results.
(b) Dried distillers grains ("DDG") tons shipped converts wet tons to a dry ton equivalent amount. Nutrient & Industrial The Nutrient & Industrial segment's current year operating results decreased from prior year. The core agriculture product lines were down year-over-year after a late and wet spring.
This coupled with strong cash generation from the Company's core businesses created significant growth in cash provided by operating activities that ultimately led to a significant amount of cash on hand as of December 31, 2023.
Strong cash generation from the Company's core businesses continued in the current year with solid cash provided by operating activities that led to the Company retaining $561.8 million of cash on hand as of December 31, 2024.
The results include expenses and benefits not allocated to the operating segments and other elimination and consolidation adjustments.
Other The Company's “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.
Lastly, the Company continued to repurchase common shares under its Repurchase Plan where $100 million of repurchases were authorized to be repurchased on or before August 20, 2024. As of December 31, 2023, approximately $14.5 million of the Repurchase Plan had been utilized.
The Repurchase Plan, approved on August 15, 2024, authorized $100 million of common share repurchases to be made on or before August 15, 2027. As of December 31, 2024, approximately $2.3 million of the Repurchase Plan had been utilized.
The vast majority of the increase in cash provided by operating activities was due to favorable changes in operating assets and liabilities as commodity prices dropped in the current year and the Company increased its focus on managing working capital balances in light of the rising interest rate environment.
The vast majority of the decrease in cash provided by operating activities was due to favorable changes in operating assets and liabilities that occurred in the prior year as commodity prices dropped significantly.
These forward purchase contracts are largely offset by forward sales contracts of commodities and the net of these forward contracts are offset by exchange-traded futures and options contracts or over-the-counter contracts. As of December 31, 2023, the Company had forward purchase contracts of $2,575.7 million, with $2,468.3 million payable within 12 months.
Commodity Purchase Obligations The Company enters into forward purchase contracts of commodities with producers through the normal course of business. These forward purchase contracts are largely offset by forward sales contracts of commodities and the net of these forward contracts are offset by exchange-traded futures and options contracts or over-the-counter contracts.
The Andersons, Inc. | 2023 Form 10-K | 22 Table of Contents Net income taxes of $45.7 million and $88.7 million were paid in the years ended December 31, 2023, and 2022, respectively.
The Andersons, Inc. | 2024 Form 10-K | 24 Table of Contents Net income taxes of $31.5 million and $45.7 million were paid in the years ended December 31, 2024, and 2023, respectively. The decrease in the current year is generally driven by considerably less U.S. research and development related expenses capitalized for tax purposes than in prior years.
Because we are a significant consumer of short-term debt in peak seasons and the majority of this is variable rate debt, increases in interest rates could have a significant impact on our profitability. In addition, periods of high commodity prices and/or unfavorable market conditions could require additional margin deposits on the Company's exchange traded futures contracts.
The majority of these short-term borrowings bear interest at variable rates, and an increase in interest rates could have a significant impact on our profitability. In addition, periods of high grain prices 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.
Sales and merchandising revenues decreased $155.9 million and cost of sales and merchandising revenues decreased $139.5 million resulting in decreased gross profit of $16.4 million from the prior year.
Nutrient & Industrial The Nutrient & Industrial segment results decreased by $7.1 million when compared to the prior year. Sales and merchandising revenues decreased $110.3 million and cost of sales and merchandising revenues decreased $98.3 million resulting in decreased gross profit of $11.9 million from the prior year.
As of December 31, 2023, the Company had fixed operating lease payment obligations of $59.1 million, with $23.8 million payable within 12 months. See Note 13 to the Consolidated Financial Statements for additional information. Commodity Purchase Obligations The Company enters into forward purchase contracts of commodities with producers through the normal course of business.
Operating Leases The Company has lease arrangements for certain equipment and facilities, including grain facilities, fertilizer facilities and equipment. As of December 31, 2024, the Company had fixed operating lease payment obligations of $138.6 million, with $29.9 million payable within 12 months. See Note 13 to the Consolidated Financial Statements for additional information.
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.
Each of these segments is generally based on the nature of products and services offered and aligns with the management structure. In early December, the Company announced a change in the organization, and the intent to shift to two operating and reporting segments.
Total storage capacity at our Ag Supply Chain and Engineered Granules locations was approximately 460 thousand tons for dry nutrients and approximately 513 thousand tons for liquid nutrients at December 31, 2023, which is similar to the prior year.
Total storage capacity at our Nutrient & Industrial locations was approximately 496 thousand tons for dry nutrients and approximately 563 thousand tons for liquid nutrients at December 31, 2024, which is slightly higher than the prior year due to the capacity added in the current year from the acquisition of Skyland in the fourth quarter of 2024.
Total Trade storage space capacity at company owned or leased facilities, including temporary pile storage, was approximately 168 million bushels at December 31, 2023, and 184 million bushels at December 31, 2022. Looking forward, agriculture fundamentals are shifting due to increased global supply.
Total Trade storage space capacity at company owned or leased facilities, including temporary pile storage, was approximately 291 million bushels at December 31, 2024, and 168 million bushels at December 31, 2023. The additional agricultural inventories on hand and storage capacity in the current year are both directly related to the investment in Skyland in the fourth quarter of 2024.
Other income decreased by $5.7 million from prior year due to $15.4 million more proceeds received in the prior year as a part of the USDA Biofuel Producer Program that was enacted as a part of the CARES Act.
Other income decreased by $6.4 million from prior year as 2023 results include additional gains of $3.4 million as a result of the deconsolidation of the ELEMENT ethanol plant combined with $2.2 million of proceeds received in the prior year as a part of the USDA Biofuel Producer Program.
This increase was attributable to changes in the following components of current assets and current liabilities: (in thousands) December 31, 2023 December 31, 2022 Variance Current Assets Cash and cash equivalents $ 643,854 $ 115,269 $ 528,585 Accounts receivable, net 762,549 1,248,878 (486,329) Inventories 1,166,700 1,731,725 (565,025) Commodity derivative assets – current 178,083 295,588 (117,505) Other current assets 55,777 74,493 (18,716) Total current assets 2,806,963 3,465,953 (658,990) Current Liabilities Short-term debt 43,106 272,575 (229,469) Trade and other payables 1,055,473 1,423,633 (368,160) Customer prepayments and deferred revenue 187,054 370,524 (183,470) Commodity derivative liabilities – current 90,849 98,519 (7,670) Current maturities of long-term debt 27,561 110,155 (82,594) Accrued expenses and other current liabilities 232,288 245,916 (13,628) Total current liabilities 1,636,331 2,521,322 (884,991) Working Capital $ 1,170,632 $ 944,631 $ 226,001 Current assets decreased $659.0 million in comparison to prior year.
This decrease was attributable to changes in the following components of current assets and current liabilities: (in thousands) December 31, 2024 December 31, 2023 Variance Current Assets Cash and cash equivalents $ 561,771 $ 643,854 $ (82,083) Accounts receivable, net 764,550 762,549 2,001 Inventories 1,286,811 1,166,700 120,111 Commodity derivative assets – current 148,801 178,083 (29,282) Other current assets 88,344 55,777 32,567 Total current assets 2,850,277 2,806,963 43,314 Current Liabilities Short-term debt 166,614 43,106 123,508 Trade and other payables 1,047,436 1,055,473 (8,037) Customer prepayments and deferred revenue 194,025 187,054 6,971 Commodity derivative liabilities – current 59,766 90,849 (31,083) Current maturities of long-term debt 36,139 27,561 8,578 Accrued expenses and other current liabilities 227,192 232,288 (5,096) Total current liabilities 1,731,172 1,636,331 94,841 Working Capital $ 1,119,105 $ 1,170,632 $ (51,527) Current assets increased $43.3 million in comparison to prior year.
While spot ethanol crush margins have softened into 2024, the first quarter generally experiences seasonally weak margins. Upcoming planned maintenance in the industry and the spring driving rebound should support improved plant economics; however, co-product values are facing headwinds as weaker corn prices are expected to compress feed values.
While spot ethanol crush margins are generally seasonally soft in the first quarter, a portion of first quarter volumes have been hedged at favorable levels. While there remains regulatory uncertainty, elevated export demand, upcoming planned maintenance in the industry, and the spring driving rebound should all support improved plant economics.
Additional segment information is included in Note 12 to the Company's Consolidated Financial Statements in Item 8.
The Andersons, Inc. | 2024 Form 10-K | 20 Table of Contents Operating Results The following discussion focuses on the operating results as shown in the Consolidated Statements of Operations with a separate discussion by segment. Additional segment information is included in Note 12 to the Company's Consolidated Financial Statements in Item 8.
The plants continue to run efficiently with high ethanol yields and favorable ethanol crush margins. The Company's renewable diesel feedstock business continued to grow as it continued to add more products to its portfolio. While the segment's results were down from the prior period, the current year includes an $87.2 million impairment charge related to the ELEMENT ethanol plant.
While the segment's results increased from the prior period, the prior year includes an $87.2 million impairment charge related to the ELEMENT ethanol plant. Without that charge in the prior year, the segment’s results would have decreased.
The Andersons, Inc. | 2023 Form 10-K | 20 Table of Contents Interest expense, net decreased by $2.4 million from the prior year with substantially all of the decrease a result of the deconsolidation of ELEMENT.
Interest expense, net decreased by $3.5 million from the prior year due to the deconsolidation of ELEMENT non-recourse debt.
Removed
The asset-based business benefited from strong elevation margins and good space income on a large and wet harvest combined with better wheat income opportunities during the year.
Added
The move was designed to streamline operational efficiency, enhance cross-functional collaboration, and further align the businesses to achieve growth. This structure will support the Company's focus on unlocking value across the Trade and Nutrient businesses in a new Agribusiness segment. The Renewables segment will continue to operate substantially as currently reported with an enhanced focus on growth.
Removed
Merchandising fundamentals were also solid during 2023, especially with a market inverse through the first part of the year, but were negatively impacted from fewer merchandising opportunities in the Middle East and North Africa including losses related to the currency liquidity issues in Egypt. The premium ingredients business also delivered positive results from acquisitions and other recently deployed capital.
Added
The Company will begin reporting our results under this new structure and recast prior periods to align with this presentation starting in the first quarter of 2025. The agricultural commodity-based business is one in which changes in selling prices generally move in relationship to changes in purchase prices.
Removed
The Company's mix of assets and merchandising businesses provide a solid foundation to benefit from large crops and carry markets. With lower commodity prices, domestic producers are hesitant to forward sell, but the Company's assets are well-positioned for the grains to flow in due course.
Added
The Company has considered the potential impact of the book value of the Company’s total shareholders’ equity briefly exceeding the Company’s market capitalization during the quarter for impairment indicators. Management ultimately concluded that an impairment triggering event had not occurred.
Removed
With continuing global unrest, volatility exists in key international shipping lanes which could provide ongoing merchandising opportunities. The Andersons, Inc. | 2023 Form 10-K | 17 Table of Contents Renewables The Renewables segment performed very well in 2023 led by outstanding earnings from strong operations at the Company's ethanol plants.
Added
The Company believes that the share price is not an accurate reflection of its current value as conditions are currently strong in the agriculture space with a positive long-term outlook. Management believes that the market’s impact on the Company’s equity value does not actually reflect the impact of these external factors on the Company.
Removed
The Ag Supply Chain product line experienced compressed margins in 2023 that were partially offset with increased volumes as nutrient prices moved lower throughout the year providing fewer margin opportunities when compared to 2022. The Specialty Liquids and Engineered Granules product lines fell slightly behind the prior year mainly due to decreased volumes.
Added
As a result of prior period tests, reviews of current operating results and other relevant market factors, the Company concluded that no impairment trigger existed as of December 31, 2024. Trade The Trade segment's operating results were consistent with the prior year and the segment showed its resilience in shifting ag markets with global grain supply outpacing demand.
Removed
Management is optimistic for a good spring application season as nutrient prices have stabilized, and farm economics should incentivize application of crop inputs.
Added
Carries returned to the market, which benefit the asset-based business through strong elevation margins and good space income. The merchandising business could not repeat its strong prior year performance with limited market volatility. The premium ingredients business delivered improved results as recent acquisitions and growth investments were accretive to results.
Removed
Prior year volumes have been reclassified for the twelve months ended December 31, 2022, to conform with current year presentation as the product mix in certain facilities has evolved. Other The Company's “Other” activities include corporate income and expense and cost for functions that provide support and services to the operating segments.
Added
The Andersons, Inc. | 2024 Form 10-K | 18 Table of Contents The portfolio mix of assets, ingredients, and merchandising businesses provides a solid foundation to benefit from large crops and carry markets, as well as tight, demand-driven markets.
Removed
Sales and merchandising revenues decreased $2,621.5 million and cost of sales and merchandising revenues decreased by $2,623.7 million resulting in an increase in gross profit of $2.2 million.
Added
With a lower-than-expected corn carryout at the end of the year, an inverse has returned to the corn markets, which could result in an increase in corn acres planted and increased volatility in 2025. Domestic premium ingredient demand is also expected to stay solid and should continue to support recent capital growth investments.
Removed
The vast majority of the decrease in sales and merchandising revenues and cost of sales and merchandising revenues is attributable to sharp commodity price decreases from the prior year as the war in Ukraine created uncertainty around global supply which temporarily drove commodity prices higher in 2022.
Added
Renewables The Renewables segment had another solid year in 2024 led by strong operations at the Company's ethanol plants. The plants continue to run efficiently with high ethanol yields and favorable corn basis. Co-product values were lower, with feed ingredients following the overall price reduction of corn despite improved demand.
Removed
The $2.2 million increase in gross profit was due to increased asset based business results that were almost entirely offset by a decrease in the merchandising business results as premium ingredients was flat period over period.
Added
Co-product values may also see improvement as there has been a recent rebound in corn values.
Removed
While the asset based business had strong results in both periods, the $35.2 million gross profit increase from the prior year includes an additional $24.3 million in insured inventory recoveries and $16.0 million in insured inventory write offs in the prior period that did not recur. Offsetting this increase was lower gross profit from the merchandising businesses of $35.6 million.
Added
Softening industry fundamentals margin led to a reset in base nutrients at more normalized levels and the outsized margin opportunities seen in recent years did not repeat. The engineered granules business saw improvement in the year on higher sales volume and margins, as the Company has continued to focus on operational improvements in this business.
Removed
The vast majority of this decrease was attributable to the international merchandising business in the Middle East and North Africa including losses related to the currency liquidity issues in Egypt. Operating, administrative and general expenses increased $34.9 million compared to prior year results.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+0 added−5 removed9 unchanged
Biggest changeMarket risk, which is estimated as the potential increase in fair value resulting from a hypothetical one-half percent decrease in interest rates, is summarized below: December 31, (in thousands) 2023 2022 Fair value of long-term debt, including current maturities $ 585,137 $ 595,705 Fair value in excess of carrying value (8,495) (10,087) Market risk 4,237 4,707 The Andersons, Inc. | 2023 Form 10-K | 26 Table of Contents Actual results may differ.
Biggest changeMarket risk, which is estimated as the potential increase in fair value resulting from a hypothetical one-half percent decrease in interest rates, is summarized below: December 31, (in thousands) 2024 2023 Fair value of long-term debt, including current maturities $ 635,387 $ 585,137 Carrying value in excess of fair value 11,454 8,495 Market risk 3,657 4,237 Actual results may differ.
The estimated fair value and market risk will vary from year to year depending on the total amount of long-term debt and the mix of variable and fixed rate debt. The Company is also party to short-term debt borrowing arrangements with a capacity of approximately $1.9 billion.
The estimated fair value and market risk will vary from year to year depending on the total amount of long-term debt and the mix of variable and fixed rate debt. The Company is also party to short-term debt borrowing arrangements with a capacity of approximately $2.2 billion.
Additionally, the Company may enter into interest rate swaps from time to time to manage our mix of fixed and variable interest rate debt effectively which may decrease the market risk noted above. As of December 31, 2023, the majority of the Company's long-term debt is hedged with interest rate swaps, limiting interest rate volatility.
Additionally, the Company may enter into interest rate swaps to manage our mix of fixed and variable interest rate debt effectively which may decrease the market risk noted above. As of December 31, 2024, the majority of the Company's long-term debt is hedged with interest rate swaps, limiting interest rate volatility.
See Note 5 to the Consolidated Financial Statements for further discussion on the impact of these hedging instruments. The Andersons, Inc. | 2023 Form 10-K | 27 Table of Contents
See Note 5 to the Consolidated Financial Statements for further discussion on the impact of these hedging instruments. The Andersons, Inc. | 2024 Form 10-K | 28 Table of Contents
The result of this analysis, which may differ from actual results, is as follows: December 31, (in thousands) 2023 2022 Net long (short) commodity position $ 6,508 $ (8,810) Market risk 651 (881) Foreign Currency The Company has subsidiaries located outside the United States where the local currency is the functional currency.
The result of this analysis, which may differ from actual results, is as follows: December 31, (in thousands) 2024 2023 Net long (short) commodity position $ 5,076 $ 6,508 Market risk 508 651 Foreign Currency The Company has subsidiaries located outside the United States where the local currency is the functional currency.
Removed
In 2023, due to ongoing foreign currency challenges in Egypt, the Company made an exception to its normal practice regarding sales into the Middle East and North Africa when it allowed customers to make payments in Egyptian pounds on receivables originally contracted in U.S. dollars.
Removed
Based on the information available at the time, management expected to be able to convert the local currency to U.S. dollars within a relatively short timeframe and was able to use non-deliverable forward currency hedges to manage the foreign currency exposure through part of the year.
Removed
As geopolitical instability and currency liquidity challenges continued to grow in the region, the non-deliverable forward currency hedges ceased to be effective and management made the decision to limit losses and accept a lower exchange rate on these receivables.
Removed
The Company was able to convert all but $5.0 million of the receivables by December 31, 2023, incurring a currency loss during the year. Due to the economic and geopolitical risk in this region of the world, management resumed its standard practice of only accepting U.S. dollars in this region.
Removed
The Company believes that the foreign currency risk that existed in 2023 is sufficiently mitigated and is not expected to be material to the Company's financial results as the Company moves forward into 2024.

Other ANDE 10-K year-over-year comparisons