v3.26.1
Derivatives
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company uses derivative instruments to manage exposures to interest rate and commodity price risks. There were no changes to the Company's hedging strategy during the period and as these derivatives impact the financial statements in different ways, they are discussed separately below.

Derivatives Designated as Hedging Instruments

Interest rate derivatives - The Company has entered into interest rate swap agreements to reduce exposure to variability in cash flows associated with its variable‑rate debt. These derivatives are designated and qualify as cash flow hedges. As of March 31, 2026, the aggregate notional amount of these interest rate swaps was approximately $400.0 million, with maturities extending through 2031. The effects of these cash flow hedges are recorded in Interest expense, net, and in Operating activities within the Condensed Statements of Cash Flows consistent with the accounting for the hedged debt.

Derivatives Not Designated as Hedging Instruments

Commodity derivatives - The Company uses commodity derivative instruments primarily to manage exposures related to inventory positions and forward purchase and sales commitments. Contracts to purchase agricultural commodities generally relate to current or future crop years, with delivery periods quoted by regulated commodity exchanges. Contracts to sell commodities to processors or other commercial consumers rarely extend beyond one year. Changes in the fair value of these instruments are recognized in Cost of sales and merchandising revenues and in Operating activities within the Condensed Statements of Cash Flows.

The following table represents the Company’s gross outstanding volumes of commodity derivative contracts as of March 31, 2026:
(in thousands)Non-exchange TradedExchange TradedUnit of Measure
Agricultural Commodities19,946 11,977 Metric Tons
Ethanol635 237 Metric Tons
Propane— 222 Metric Tons
Other823 560 Metric Tons
The following table presents a reconciliation of the gross recognized derivative assets and liabilities to the net amounts reported on the Company’s Condensed Consolidated Balance Sheets, reflecting the impact of enforceable master netting arrangements and related cash collateral. The Company’s enforceable master netting arrangements and rights of setoff did not change during the period.
March 31, 2026
(in thousands)Gross Amounts RecognizedGross Amounts OffsetNet Amounts Presented
Amounts Not Offset (a)
Cash Collateral Pledged (Received)Net Amount
Derivative Assets
Commodity (b)
$206,340 $(143,337)$63,003 $— $104,507 $167,510 
Interest rate (c)
18,291 — 18,291 (105)— 18,186 
Total derivative assets224,631 (143,337)81,294 (105)104,507 185,696 
Derivative Liabilities
Commodity (b)
212,992 (143,337)69,655 — — 69,655 
Interest rate (c)
762 — 762 (105)— 657 
Total derivative liabilities$213,754 $(143,337)$70,417 $(105)$— $70,312 
December 31, 2025
(in thousands)Gross Amounts RecognizedGross Amounts OffsetNet Amounts Presented
Amounts Not Offset (a)
Cash Collateral Pledged (Received)Net Amount
Derivative Assets
Commodity (b)
$156,780 $(37,384)$119,396 $— $16,732 $136,128 
Interest rate (c)
17,402 — 17,402 (21)— 17,381 
Total derivative assets174,182 (37,384)136,798 (21)16,732 153,509 
Derivative Liabilities
Commodity (b)
88,635 (37,384)51,251 — — 51,251 
Interest rate (c)
1,097 — 1,097 (21)— 1,076 
Total derivative liabilities$89,732 $(37,384)$52,348 $(21)$— $52,327 
March 31, 2025
(in thousands)Gross Amounts RecognizedGross Amounts OffsetNet Amounts Presented
Amounts Not Offset (a)
Cash Collateral Pledged (Received)Net Amount
Derivative Assets
Commodity (b)
$224,800 $(47,993)$176,807 $— $(12,014)$164,793 
Interest rate (c)
23,201 — 23,201 (174)— 23,027 
Total derivative assets248,001 (47,993)200,008 (174)(12,014)187,820 
Derivative Liabilities
Commodity (b)
123,774 (47,993)75,781 — — 75,781 
Interest rate (c)
849 — 849 (174)— 675 
Total derivative liabilities$124,623 $(47,993)$76,630 $(174)$— $76,456 
(a) Amounts not offset represents the impact of those amounts recorded on a gross basis within the Condensed Consolidated Balance Sheets that net against the gross exposure subject to an enforceable master netting arrangement.
(b) The Company’s commodity derivative assets and liabilities are recorded in Commodity derivative assets - current and Commodity derivative liabilities - current for contracts maturing within twelve months, and in Other assets, net and Other long‑term liabilities for contracts with maturities greater than twelve months, within the Condensed Consolidated Balance Sheets.
(c) The Company’s interest rate derivative assets and liabilities are recorded in Other current assets and Accrued expenses and other current liabilities for contracts maturing within twelve months, and in Other assets, net and Other long‑term liabilities for contracts with maturities greater than twelve months, within the Condensed Consolidated Balance Sheets.
The following table presents the gains (losses) on derivative instruments recognized in Comprehensive income attributable to The Andersons, Inc.:
 Three months ended March 31,
(in thousands)Classification20262025
Designated as Hedging Instruments
Interest rate
Gain in Interest expense, net (a)
$1,361 $2,074 
Gain (loss) in Other comprehensive income
1,578 (6,820)
Not Designated as Hedging Instruments
Commodity
(Loss) gain in Cost of sales and merchandising revenues
$(74,797)$49,998 
(a) The entire amount recognized within Interest expense, net was reclassified from Accumulated other comprehensive income.