COMMITMENTS AND CONTINGENCIES.
|6 Months Ended|
Jun. 30, 2020
|Commitments and Contingencies Disclosure [Abstract]|
|COMMITMENTS AND CONTINGENCIES.||
Sales Commitments – At June 30, 2020, the Company had entered into sales contracts with its major customers to sell certain quantities of ethanol and co-products. The Company had open ethanol indexed-price contracts for 5,169,000 gallons of ethanol as of June 30, 2020 and open fixed-price ethanol and high quality alcohol sales contracts totaling $226,845,000 as of June 30, 2020. The Company had open fixed-price co-product sales contracts totaling $9,320,000 and open indexed-price co-product sales contracts for 179,000 tons as of June 30, 2020. These sales contracts are scheduled to be completed throughout 2020 and 2021.
Purchase Commitments – At June 30, 2020, the Company had indexed-price purchase contracts to purchase 35,476,000 gallons of ethanol and fixed-price purchase contracts to purchase $7,766,000 of ethanol from its suppliers. The Company had fixed-price purchase contracts to purchase $7,669,000 of corn from its suppliers as of June 30, 2020. These purchase commitments are scheduled to be satisfied throughout 2020. In July 2020, the Company entered into derivative contracts to hedge its corn costs for its fixed sales contracts.
Litigation – General – The Company is subject to various claims and contingencies in the ordinary course of its business, including those related to litigation, business transactions, employee-related matters, environmental regulations, and others. When the Company is aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company will record a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the claim if the likelihood of a potential loss is reasonably possible and the amount involved could be material. While there can be no assurances, the Company does not expect that any of its pending legal proceedings will have a material impact on the Company's financial condition or results of operations.
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef