Form 10-Q Andersons, Inc. For: Mar 31

May 5, 2022 2:10 PM EDT

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ande-20220331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended 03/31/2022
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to  .             
Commission file number 000-20557
 
ande-20220331_g1.jpg
THE ANDERSONS, INC.
(Exact name of the registrant as specified in its charter)
 
Ohio34-1562374
(State of incorporation or organization)(I.R.S. Employer Identification No.)
1947 Briarfield Boulevard
MaumeeOhio43537
(Address of principal executive offices)(Zip Code)

(419) 893-5050
(Telephone Number)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: Trading Symbol Name of each exchange on which registered:
Common stock, $0.00 par value, $0.01 stated value ANDE The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ý    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. 
Large accelerated filerýAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)  Yes     No  ý

The registrant had 33,829,984 common shares outstanding at April 22, 2022.


THE ANDERSONS, INC.
INDEX
 
 Page No.
PART I. FINANCIAL INFORMATION
PART II. OTHER INFORMATION




Part I. Financial Information
Item 1. Financial Statements

The Andersons, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
 
 Three months ended March 31,
 20222021
Sales and merchandising revenues$3,977,954 $2,594,719 
Cost of sales and merchandising revenues3,858,419 2,481,278 
Gross profit119,535 113,441 
Operating, administrative and general expenses101,987 96,998 
Interest expense, net10,859 9,989 
Other income, net:
Equity in earnings (losses) of affiliates, net(244)1,794 
Other income, net4,162 5,868 
Income before income taxes from continuing operations10,607 14,116 
Income tax provision from continuing operations4,103 4,361 
Net income from continuing operations6,504 9,755 
Income (loss) from discontinued operations, net of income taxes(554)3,507 
Net income5,950 13,262 
Net income (loss) attributable to noncontrolling interests447 (1,845)
Net income attributable to The Andersons, Inc.$5,503 $15,107 
Average number of shares outstanding - basic33,738 33,188 
Average number of share outstanding - diluted34,279 33,577 
Earnings (loss) per share attributable to The Andersons, Inc. common shareholders:
Basic earnings (loss):
Continuing operations$0.18 $0.35 
Discontinued operations(0.02)0.11 
$0.16 $0.46 
Diluted earnings (loss):
Continuing operations$0.18 $0.35 
Discontinued operations(0.02)0.10 
$0.16 $0.45 
See Notes to Condensed Consolidated Financial Statements

The Andersons, Inc. | Q1 2022 Form 10-Q | 1

The Andersons, Inc.
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(In thousands)
 
 Three months ended March 31,
 20222021
Net income$5,950 $13,262 
Other comprehensive income (loss), net of tax:
Change in unrecognized actuarial loss and prior service cost(159)(103)
Foreign currency translation adjustments98 1,224 
Cash flow hedge activity12,422 9,741 
Other comprehensive income12,361 10,862 
Comprehensive income18,311 24,124 
Comprehensive income (loss) attributable to the noncontrolling interests447 (1,845)
Comprehensive income attributable to The Andersons, Inc.$17,864 $25,969 
See Notes to Condensed Consolidated Financial Statements

The Andersons, Inc. | Q1 2022 Form 10-Q | 2


The Andersons, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
 (In thousands)
March 31,
2022
December 31,
2021
March 31,
2021
Assets
Current assets:
Cash and cash equivalents$36,381 $216,444 $35,393 
Accounts receivable, net1,050,259 835,180 677,118 
Inventories (Note 2)
1,950,303 1,814,538 1,287,637 
Commodity derivative assets – current (Note 5)
769,916 410,813 317,939 
Current assets held-for-sale (Note 14)
20,255 20,885 37,136 
Other current assets113,589 74,468 81,666 
Total current assets3,940,703 3,372,328 2,436,889 
Other assets:
Goodwill129,342 129,342 131,542 
Other intangible assets, net111,055 117,137 133,198 
Right of use assets, net51,821 52,146 34,966 
Other assets held-for-sale (Note 14)
45,264 43,169 629,228 
Other assets, net92,506 69,068 60,964 
Total other assets429,988 410,862 989,898 
Property, plant and equipment, net (Note 3)
772,245 786,029 839,950 
Total assets$5,142,936 $4,569,219 $4,266,737 
Liabilities and equity
Current liabilities:
Short-term debt (Note 4)
$1,449,768 $501,792 $915,205 
Trade and other payables741,124 1,199,324 534,660 
Customer prepayments and deferred revenue384,723 358,119 161,696 
Commodity derivative liabilities – current (Note 5)
216,836 128,911 91,448 
Current maturities of long-term debt (Note 4)
54,158 32,256 42,824 
Current liabilities held-for-sale (Note 14)
10,200 13,379 26,362 
Accrued expenses and other current liabilities205,958 230,148 145,921 
Total current liabilities3,062,767 2,463,929 1,918,116 
Long-term lease liabilities31,419 31,322 21,210 
Long-term debt, less current maturities (Note 4)
571,181 600,487 877,583 
Deferred income taxes68,437 71,127 173,481 
Other long-term liabilities held-for-sale (Note 14)
14,738 16,119 45,172 
Other long-term liabilities77,173 78,531 48,624 
Total liabilities3,825,715 3,261,515 3,084,186 
Commitments and contingencies (Note 13)
Shareholders’ equity:
Common shares, without par value (63,000 shares authorized; 34,064, 33,870 and 33,786 shares issued at 3/31/2022, 12/31/2021 and 3/31/2021, respectively)
142 140 140 
Preferred shares, without par value (1,000 shares authorized; none issued)
   
Additional paid-in-capital375,794 368,595 355,961 
Treasury shares, at cost (61, 11 and 123 shares at 3/31/2022, 12/31/2021 and 3/31/2021, respectively)
(2,265)(263)(2,872)
Accumulated other comprehensive income (loss)13,555 1,194 (1,214)
Retained earnings701,799 702,759 631,652 
Total shareholders’ equity of The Andersons, Inc.1,089,025 1,072,425 983,667 
Noncontrolling interests228,196 235,279 198,884 
Total equity1,317,221 1,307,704 1,182,551 
Total liabilities and equity$5,142,936 $4,569,219 $4,266,737 
See Notes to Condensed Consolidated Financial Statements
The Andersons, Inc. | Q1 2022 Form 10-Q | 3

The Andersons, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
 Three months ended March 31,
 20222021
Operating Activities
Net income from continuing operations$6,504 $9,755 
Income (loss) from discontinued operations, net of income taxes(554)3,507 
Net income5,950 13,262 
Adjustments to reconcile net income to cash used in operating activities:
Depreciation and amortization34,377 47,504 
Bad debt expense, net1,255 (1,686)
Equity in (earnings) losses of affiliates, net of dividends244 (1,794)
Gain on sales of assets, net(81)(2,635)
Stock-based compensation expense1,818 1,990 
Deferred federal income tax(6,947)(2)
Other2,885 4,579 
Changes in operating assets and liabilities:
Accounts receivable(215,012)(33,476)
Inventories(136,820)5,007 
Commodity derivatives(277,761)(53,295)
Other current and non-current assets(38,810)16,740 
Payables and other current and non-current liabilities(446,096)(441,921)
Net cash used in operating activities(1,074,998)(445,727)
Investing Activities
Purchases of property, plant and equipment and capitalized software(20,722)(16,919)
Proceeds from sale of assets72 385 
Purchases of investments(1,333)(2,800)
Purchases of Rail assets(3,186)(2,611)
Proceeds from sale of Rail assets248 5,383 
Other 832 
Net cash used in investing activities(24,921)(15,730)
Financing Activities
Net receipts under short-term lines of credit796,209 260,160 
Proceeds from issuance of short-term debt350,000 250,000 
Payments of short-term debt(200,000) 
Proceeds from issuance of long-term debt 89,700 
Payments of long-term debt(7,566)(125,884)
Contributions from noncontrolling interest owner2,450 1,960 
Distributions to noncontrolling interest owner(9,980) 
Payments of debt issuance costs(7,310)(1,225)
Dividends paid(6,144)(5,839)
Proceeds from exercises of stock options5,024  
Other(2,926)(1,110)
Net cash provided by financing activities919,757 467,762 
Effect of exchange rates on cash and cash equivalents99 (35)
Increase (decrease) in cash and cash equivalents(180,063)6,270 
Cash and cash equivalents at beginning of period216,444 29,123 
Cash and cash equivalents at end of period$36,381 $35,393 
See Notes to Condensed Consolidated Financial Statements
The Andersons, Inc. | Q1 2022 Form 10-Q | 4

    The Andersons, Inc.
Condensed Consolidated Statements of Equity (Unaudited)
(In thousands, except per share data)
Three Months Ended
 Common
Shares
Additional
Paid-in
Capital
Treasury
Shares
Accumulated
Other
Comprehensive Income
(Loss)
Retained
Earnings
Noncontrolling
Interests
Total
Balance at December 31, 2020
$138 $348,714 $(966)$(12,076)$626,081 $198,769 $1,160,660 
Net income (loss)15,107 (1,845)13,262 
Other comprehensive income9,418 9,418 
Amounts reclassified from Accumulated other comprehensive income1,444 1,444 
Cash received from noncontrolling interests, net1,960 1,960 
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $0 (86 shares)
27,247 (2,154)(3,480)1,615 
Dividends declared ($0.175 per common share)
(5,808)(5,808)
Restricted share award dividend equivalents248 (248) 
Balance at March 31, 2021
$140 $355,961 $(2,872)$(1,214)$631,652 $198,884 $1,182,551 
Balance at December 31, 2021
$140 $368,595 $(263)$1,194 $702,759 $235,279 $1,307,704 
Net income5,503 447 5,950 
Other comprehensive income10,822 10,822 
Amounts reclassified from Accumulated other comprehensive income1,539 1,539 
Cash received from noncontrolling interests, net2,450 2,450 
Distributions to noncontrolling interests(9,980)(9,980)
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of $0 (59 shares)
2 7,145 (2,322)4,825 
Dividends declared ($0.180 per common share)
(6,089)(6,089)
Restricted share award dividend equivalents54 320 (374) 
Balance at March 31, 2022
$142 $375,794 $(2,265)$13,555 $701,799 $228,196 $1,317,221 
See Notes to Condensed Consolidated Financial Statements

The Andersons, Inc. | Q1 2022 Form 10-Q | 5

The Andersons, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)


1. Basis of Presentation and Consolidation

These Condensed Consolidated Financial Statements include the accounts of The Andersons, Inc. and its wholly owned and controlled subsidiaries (the “Company”). Controlled subsidiaries include majority-owned subsidiaries and variable interest entities (“VIEs”) of which the Company is the primary beneficiary. The portion of these entities that is not owned by the Company is presented as noncontrolling interests. All intercompany accounts and transactions are eliminated in consolidation.
Investments in unconsolidated entities in which the Company has significant influence, but not control, are accounted for using the equity method of accounting.

During the third quarter of 2021, substantially all of the assets and liabilities of the Rail business were classified as held-for-sale in the accompanying Condensed Consolidated Balance Sheets. As discussed further in Note 14, the Company executed a definitive agreement to sell the Rail Leasing business. In conjunction with the sale of the Rail Leasing business, the Company announced its intent to divest the remainder of the Rail business, which primarily consisted of the Rail Repair business. These transactions effectively constitute the entirety of what has historically been included in the Rail reportable segment. Therefore, the associated operating results, net of income tax, have been classified as discontinued operations in the accompanying Condensed Consolidated Statements of Operations for all periods presented. Throughout this Quarterly Report on Form 10-Q, with the exception of the Condensed Consolidated Statements of Cash Flows and unless otherwise indicated, amounts and activity are presented on a continuing operations basis.

Certain reclassifications have been made to the prior year financial statements to conform to current year classifications. The reclassification relates to the Condensed Consolidated Balance Sheet presentation of assets and liabilities as held-for-sale and Condensed Consolidated Statements of Operations presentation of results classified as discontinued operations in relation to the Rail business transactions noted above.

In the opinion of management, all adjustments consisting of normal and recurring items considered necessary for the fair presentation of the results of operations, financial position, and cash flows for the periods indicated have been made. The results in these Condensed Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022. An unaudited Condensed Consolidated Balance Sheet as of March 31, 2021 has been included as the Company operates in several seasonal industries.
The Condensed Consolidated Balance Sheet data at December 31, 2021 was derived from the audited Consolidated Financial Statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in The Andersons, Inc. Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”).


The Andersons, Inc. | Q1 2022 Form 10-Q | 6


2. Inventories

Major classes of inventories are presented below. Readily Marketable Inventories ("RMI") are agricultural commodity inventories such as corn, soybeans, wheat, and ethanol co-products, among others, carried at net realizable value which approximates fair value based on their commodity characteristics, widely available markets, and pricing mechanisms. The net realizable value of RMI is calculated as the fair value (spot price of the commodity in an exchange), less cost of disposal and transportation based on the local market. All other inventories are held at lower of cost or net realizable value.
(in thousands)March 31,
2022
December 31,
2021
March 31,
2021
Grain and other agricultural products (a)$1,435,763 $1,427,708 $971,914 
Propane and frac sand (a)17,529 23,780 8,388 
Ethanol and co-products (a)193,303 184,354 136,234 
Plant nutrients and cob products303,708 178,696 171,101 
Total Inventories$1,950,303 $1,814,538 $1,287,637 
(a) Includes RMI of $1,413.5 million, $1,410.9 million and $942.4 million at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

Inventories do not include 1.0 million, 3.0 million and 1.6 million bushels of grain held in storage for others as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively. The Company does not have title to the grain and is only liable for any deficiencies in grade or shortage of quantity that may arise during the storage period. Management has not experienced historical losses on any deficiencies and does not anticipate material losses in the future.


3. Property, Plant and Equipment

The components of Property, plant and equipment, net are as follows:
(in thousands)March 31,
2022
December 31,
2021
March 31,
2021
Land$39,183 $39,162 $39,357 
Land improvements and leasehold improvements91,061 91,122 92,656 
Buildings and storage facilities369,850 368,577 379,245 
Machinery and equipment946,352 936,476 912,372 
Construction in progress23,512 20,676 16,108 
1,469,958 1,456,013 1,439,738 
Less: accumulated depreciation 697,713 669,984 599,788 
Property, plant and equipment, net$772,245 $786,029 $839,950 

Depreciation expense on property, plant and equipment used in continuing operations was $28.3 million and $31.1 million for the three months ended March 31, 2022 and 2021, respectively.



The Andersons, Inc. | Q1 2022 Form 10-Q | 7


4. Debt

Short-term and long-term debt at March 31, 2022, December 31, 2021 and March 31, 2021 consisted of the following:
(in thousands)March 31,
2022
December 31,
2021
March 31,
2021
Short-term debt – non-recourse$148,216 $65,485 $140,730 
Short-term debt – recourse1,301,552 436,307 774,475 
Total short-term debt$1,449,768 $501,792 $915,205 
Current maturities of long-term debt – non-recourse$7,959 $7,601 $118 
Current maturities of long-term debt – recourse46,199 24,655 42,706 
Total current maturities of long-term debt$54,158 $32,256 $42,824 
Long-term debt, less: current maturities – non-recourse$62,675 $64,972 $126,772 
Long-term debt, less: current maturities – recourse508,506 535,515 750,811 
Total long-term debt, less: current maturities$571,181 $600,487 $877,583 

On March 2, 2022, the Company completed an incremental term loan amendment to its credit agreement dated January 11, 2019. The amendment provides for a short-term note of $250.0 million in which the entire stated principal is due on May 31, 2022. On March 9, 2022, the Company completed an additional term loan amendment that expanded the short-term note capacity from $250.0 million to $450.0 million. The term note will bear interest at variable rates, which are based on SOFR plus an applicable spread. As of March 31, 2022, the Company had drawn $350.0 million on the short-term note.

On March 28, 2022, the Company amended its credit agreement dated January 11, 2019. The amendment increased borrowing capacity on the revolver from $900.0 million to $1,550.0 million and extended the maturity dates of the $140.6 million and $209.4 million long-term notes originally due in 2026 to March 26, 2027 and March 28, 2029, respectively. The amendment also transitions the reference rate in the credit agreement from LIBOR to SOFR. The revolver and term notes will bear interest at variable rates, which are based on SOFR plus an applicable spread.

As of March 31, 2022, the Company repaid the remaining $200.0 million balance that was outstanding as of December 31, 2021 on a short-term note that was classified as recourse debt to the Company.

The total borrowing capacity of the Company's lines of credit at March 31, 2022 was $2,031.4 million of which the Company had a total of $907.3 million available for borrowing under its lines of credit. The Company's borrowing capacity is reduced by a combination of outstanding borrowings and letters of credit.

As of March 31, 2022, December 31, 2021 and March 31, 2021, the estimated fair value of long-term debt, including the current portion, was $633.9 million, $650.7 million and $940.7 million, respectively. The Company estimates the fair value of its long-term debt based upon the Company’s credit standing and current interest rates offered to the Company on similar bonds and rates currently available to the Company for long-term borrowings with similar terms and remaining maturities.

The Company is in compliance with all financial covenants as of March 31, 2022.

The Andersons, Inc. | Q1 2022 Form 10-Q | 8


5. Derivatives

The Company’s operating results are affected by changes to commodity prices. The Trade and Renewables businesses have established “unhedged” futures position limits (the amount of a commodity, either owned or contracted for, that does not have an offsetting derivative contract). To reduce the exposure to market price risk on commodities owned and forward purchase and sale contracts, the Company enters into exchange traded commodity futures and options contracts and over-the-counter forward and option contracts with various counterparties. These contracts are primarily traded via regulated commodity exchanges. The Company’s forward purchase and sales contracts are for physical delivery of the commodity in a future period. Contracts to purchase commodities from producers generally relate to the current or future crop years for delivery periods quoted by regulated commodity exchanges. Most contracts for the sale of commodities to processors or other commercial consumers generally do not extend beyond one year.

Most of these contracts meet the definition of derivatives. While the Company considers its commodity contracts to be effective economic hedges, the Company does not designate or account for its commodity contracts as hedges as defined under current accounting standards. The Company primarily accounts for its commodity derivatives at estimated fair value. The estimated fair value of the commodity derivative contracts that require the receipt or posting of cash collateral is recorded on a net basis (offset against cash collateral posted or received, also known as margin deposits) within commodity derivative assets or liabilities. Management determines fair value based on exchange-quoted prices and in the case of its forward purchase and sale contracts, estimated fair value is adjusted for differences in local markets and non-performance risk. For contracts for which physical delivery occurs, balance sheet classification is based on estimated delivery date. For futures, options and over-the-counter contracts in which physical delivery is not expected to occur but, rather, the contract is expected to be net settled, the Company classifies these contracts as current or noncurrent assets or liabilities, as appropriate, based on the Company’s expectations as to when such contracts will be settled.

Realized and unrealized gains and losses in the value of commodity contracts (whether due to changes in commodity prices, changes in performance or credit risk, or due to sale, maturity or extinguishment of the commodity contract) and commodity inventories are included in cost of sales and merchandising revenues.

Generally accepted accounting principles permit a party to a master netting arrangement to offset fair value amounts recognized for derivative instruments against the right to reclaim cash collateral or obligation to return cash collateral under the same master netting arrangement. The Company has master netting arrangements for its exchange traded futures and options contracts and certain over-the-counter contracts. When the Company enters into a future, option or an over-the-counter contract, an initial margin deposit may be required by the counterparty. The amount of the margin deposit varies by commodity. If the market price of a future, option or an over-the-counter contract moves in a direction that is adverse to the Company’s position, an additional margin deposit, called a maintenance margin, is required. The margin deposit assets and liabilities are included in short-term commodity derivative assets or liabilities, as appropriate, in the Condensed Consolidated Balance Sheets.

The following table presents at March 31, 2022, December 31, 2021 and March 31, 2021, a summary of the estimated fair value of the Company’s commodity derivative instruments that require cash collateral and the associated cash posted/received as collateral. The net asset or liability positions of these derivatives (net of their cash collateral) are determined on a counterparty-by-counterparty basis and are included within current or non-current commodity derivative assets (or liabilities) on the Condensed Consolidated Balance Sheets:

(in thousands)March 31, 2022December 31, 2021March 31, 2021
Cash collateral paid$409,743 $165,250 $95,533 
Fair value of derivatives(144,937)(36,843)(76,388)
Net derivative asset position$264,806 $128,407 $19,145 

The Andersons, Inc. | Q1 2022 Form 10-Q | 9


The following table presents, on a gross basis, current and non-current commodity derivative assets and liabilities:
March 31, 2022
(in thousands)Commodity Derivative Assets - CurrentCommodity Derivative Assets - NoncurrentCommodity Derivative Liabilities - CurrentCommodity Derivative Liabilities - NoncurrentTotal
Commodity derivative assets$637,947 $15,860 $34,798 $1,264 $689,869 
Commodity derivative liabilities(276,874)(848)(252,534)(5,759)(536,015)
Cash collateral paid408,843  900  409,743 
Balance sheet line item totals$769,916 $15,012 $(216,836)$(4,495)$563,597 

December 31, 2021
(in thousands)Commodity Derivative Assets - CurrentCommodity Derivative Assets - NoncurrentCommodity Derivative Liabilities - CurrentCommodity Derivative Liabilities - NoncurrentTotal
Commodity derivative assets$339,321 $4,677 $23,762 $1,209 $368,969 
Commodity derivative liabilities(93,758)(105)(152,673)(2,578)(249,114)
Cash collateral paid165,250    165,250 
Balance sheet line item totals$410,813 $4,572 $(128,911)$(1,369)$285,105 

March 31, 2021
(in thousands)Commodity Derivative Assets - CurrentCommodity Derivative Assets - NoncurrentCommodity Derivative Liabilities - CurrentCommodity Derivative Liabilities - NoncurrentTotal
Commodity derivative assets$357,802 $6,762 $20,752 $16 $385,332 
Commodity derivative liabilities(123,480)(925)(124,116)(1,029)(249,550)
Cash collateral paid83,617  11,916  95,533 
Balance sheet line item totals$317,939 $5,837 $(91,448)$(1,013)$231,315 

The net pre-tax gains and losses on commodity derivatives not designated as hedging instruments are included in the Company’s Condensed Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021 are as follows:

 Three months ended March 31,
(in thousands)20222021
Gains (losses) on commodity derivatives included in Cost of sales and merchandising revenues$33,998 $166,985 


The Andersons, Inc. | Q1 2022 Form 10-Q | 10

The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at March 31, 2022, December 31, 2021 and March 31, 2021:
March 31, 2022
(in thousands)Number of BushelsNumber of GallonsNumber of Tons
Non-exchange traded:
Corn722,719   
Soybeans133,043   
Wheat102,690   
Oats45,967   
Ethanol 214,513  
Dried distillers grain  435 
Soybean meal  550 
Other8,697 24,565 3,078 
Subtotal1,013,116 239,078 4,063 
Exchange traded:
Corn267,135   
Soybeans86,410   
Wheat78,500   
Oats1,815   
Ethanol 47,082  
Propane 13,356  
Other110 1,470 547 
Subtotal433,970 61,908 547 
Total1,447,086 300,986 4,610 
December 31, 2021
(in thousands)Number of BushelsNumber of GallonsNumber of Tons
Non-exchange traded:
Corn685,681   
Soybeans77,592   
Wheat109,547   
Oats31,627   
Ethanol 192,447  
Dried distillers grain  507 
Soybean meal  544 
Other57,268 16,092 1,854 
Subtotal961,715 208,539 2,905 
Exchange traded:
Corn226,215   
Soybeans64,730   
Wheat65,020   
Oats1,300