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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 March 31, 2020

☐	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

THE ANDERSONS, INC.

(Exact name of the registrant as specified in its charter)

Ohio		34-1562374
(State of incorporation or organization)		(I.R.S. Employer Identification No.)
1947 Briarfield Boulevard
Maumee	Ohio	43537
(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 and posted 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 filer	ý	Accelerated Filer	☐
Non-accelerated filer	☐	Smaller 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 approximately 32.9 million common shares outstanding at April 24, 2020.

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THE ANDERSONS, INC.

INDEX

	Page No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets – March 31, 2020, December 31, 2019 and March 31, 2019	3
Condensed Consolidated Statements of Operations – Three months ended March 31, 2020 and 2019	5
Condensed Consolidated Statements of Comprehensive Loss – Three months ended March 31, 2020 and 2019	6
Condensed Consolidated Statements of Cash Flows – Three months ended March 31, 2020 and 2019	7
Condensed Consolidated Statements of Equity – Three months ended March 31, 2020 and 2019	8
Notes to Condensed Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3. Quantitative and Qualitative Disclosures about Market Risk	36
Item 4. Controls and Procedures	36
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	37
Item 1A. Risk Factors	37
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 4. Mine Safety Disclosure	38
Item 6. Exhibits	38

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Part I. Financial Information

Item 1. Financial Statements

The Andersons, Inc.<br><br>Condensed Consolidated Balance Sheets<br><br>(Unaudited)(In thousands)
	March 31, <br>2020		December 31, <br>2019		March 31, <br>2019
Assets
Current assets:
Cash, cash equivalents and restricted cash	$	19,693	$	54,895	$	29,991
Accounts receivable, net	539,671		536,367		611,290
Inventories (Note 2)	1,028,076		1,170,536		1,026,465
Commodity derivative assets – current (Note 5)	149,070		107,863		158,277
Other current assets	85,372		75,681		60,586
Total current assets	1,821,882		1,945,342		1,886,609
Other assets:
Goodwill	135,360		135,360		119,641
Other intangible assets, net	167,398		175,312		206,572
Right of use assets, net	62,182		76,401		85,766
Equity method investments	22,910		23,857		121,781
Other assets, net	24,305		21,753		30,449
Total other assets	412,155		432,683		564,209
Rail Group assets leased to others, net (Note 3)	597,069		584,298		537,629
Property, plant and equipment, net (Note 3)	921,585		938,418		671,805
Total assets	$	3,752,691	$	3,900,741	$	3,660,252

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The Andersons, Inc.<br><br>Condensed Consolidated Balance Sheets (continued)<br><br>(Unaudited)(In thousands)
	March 31, <br>2020			December 31, <br>2019			March 31, <br>2019
Liabilities and equity
Current liabilities:
Short-term debt (Note 4)	$	392,450		$	147,031		$	434,304
Trade and other payables	553,416			873,081			590,258
Customer prepayments and deferred revenue	121,148			133,585			148,345
Commodity derivative liabilities – current (Note 5)	90,491			46,942			66,623
Current maturities of long-term debt (Note 4)	80,758			62,899			55,160
Accrued expenses and other current liabilities	147,225			176,381			151,648
Total current liabilities	1,385,488			1,439,919			1,446,338
Long-term lease liabilities	43,308			51,091			57,451
Long-term debt, less current maturities (Note 4)	987,526			1,016,248			982,025
Deferred income taxes	156,804			146,155			138,598
Other long-term liabilities	65,703			51,673			37,554
Total liabilities	2,638,829			2,705,086			2,661,966
Commitments and contingencies (Note 13)
Shareholders’ equity:
Common shares, without par value (63,000 shares authorized; 33,550 shares issued at 3/31/2020, 12/31/2019 and 3/31/2019)	137			137			137
Preferred shares, without par value (1,000 shares authorized; none issued)	—			—			—
Additional paid-in-capital	341,382			345,359			324,753
Treasury shares, at cost (21, 207 and 193 shares at 3/31/2020, 12/31/2019 and 3/31/2019, respectively)	(652		)	(7,342		)	(7,216		)
Accumulated other comprehensive income (loss)	(27,649		)	(7,231		)	2,474
Retained earnings	599,039			642,687			627,136
Total shareholders’ equity of The Andersons, Inc.	912,257			973,610			947,284
Noncontrolling interests	201,605			222,045			51,002
Total equity	1,113,862			1,195,655			998,286
Total liabilities and equity	$	3,752,691		$	3,900,741		$	3,660,252

See Notes to Condensed Consolidated Financial Statements

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The Andersons, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)(In thousands, except per share data)

	Three months ended March 31,
	2020			2019
Sales and merchandising revenues	$	1,853,105		$	1,976,792
Cost of sales and merchandising revenues	1,789,975			1,867,128
Gross profit	63,130			109,664
Operating, administrative and general expenses	105,060			113,349
Interest expense, net	15,587			15,910
Other income, net:
Equity in earnings of affiliates, net	129			1,519
Other income (loss), net	4,813			(1,514		)
Loss before income taxes	(52,575		)	(19,590		)
Income tax benefit	(1,464		)	(5,442		)
Net loss	(51,111		)	(14,148		)
Net loss attributable to the noncontrolling interests	(13,449		)	(155		)
Net loss attributable to The Andersons, Inc.	$	(37,662	)	$	(13,993	)
Per common share:
Basic loss attributable to The Andersons, Inc. common shareholders	$	(1.15	)	$	(0.43	)
Diluted loss attributable to The Andersons, Inc. common shareholders	$	(1.15	)	$	(0.43	)

See Notes to Condensed Consolidated Financial Statements

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The Andersons, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)(In thousands)

	Three months ended March 31,
	2020			2019
Net loss	$	(51,111	)	$	(14,148	)
Other comprehensive income (loss), net of tax:
Change in unrecognized actuarial loss and prior service cost (net of income tax of $26 and $43)	(116		)	(126		)
Cash flow hedge activity (net of income tax of $4,519 and $1,201)	(13,663		)	(3,622		)
Foreign currency translation adjustments (net of income tax of $0 for both periods)	(6,639		)	12,609
Other comprehensive income (loss)	(20,418		)	8,861
Comprehensive loss	(71,529		)	(5,287		)
Comprehensive loss attributable to the noncontrolling interests	(13,449		)	(155		)
Comprehensive loss attributable to The Andersons, Inc.	$	(58,080	)	$	(5,132	)

See Notes to Condensed Consolidated Financial Statements

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The Andersons, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)(In thousands)

	Three months ended March 31,
	2020			2019
Operating Activities
Net loss	$	(51,111	)	$	(14,148	)
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization	46,898			33,760
Bad debt expense	4,310			318
Equity in earnings of affiliates, net of dividends	(129		)	(1,465		)
Gains on sales of Rail Group assets and related leases	(645		)	(736		)
Stock-based compensation expense	2,880			4,799
Deferred federal income tax	16,474			(5,640		)
Inventory write down	10,571			—
Other	4,001			4,528
Changes in operating assets and liabilities:
Accounts receivable	(11,737		)	(79,295		)
Inventories	122,323			124,741
Commodity derivatives	1,231			(9,149		)
Other assets	(10,887		)	11,337
Payables and other accrued expenses	(362,609		)	(191,095		)
Net cash used in operating activities	(228,430		)	(122,045		)
Investing Activities
Acquisition of business, net of cash acquired	—			(147,343		)
Purchases of Rail Group assets	(13,270		)	(15,873		)
Proceeds from sale of Rail Group assets	2,405			1,948
Purchases of property, plant and equipment and capitalized software	(19,307		)	(44,728		)
Proceeds from sale of assets	36			400
Purchase of investments	(280		)	(240		)
Net cash used in investing activities	(30,416		)	(205,836		)
Financing Activities
Net change in short-term borrowings	251,712			9,942
Proceeds from issuance of long-term debt	90,736			693,761
Payments of long-term debt	(104,913		)	(361,067		)
Contributions by noncontrolling interest owner	3,307			4,715
Distributions to noncontrolling interest owner	(10,298		)	—
Payments of debt issuance costs	(250		)	(5,788		)
Dividends paid	(5,723		)	(5,515		)
Other	(994		)	2
Net cash provided by financing activities	223,577			336,050
Effect of exchange rates on cash, cash equivalents and restricted cash	67			(771		)
Increase (Decrease) in cash, cash equivalents and restricted cash	(35,202		)	7,398
Cash, cash equivalents and restricted cash at beginning of period	54,895			22,593
Cash, cash equivalents and restricted cash at end of period	$	19,693		$	29,991

See Notes to Condensed Consolidated Financial Statements

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The Andersons, Inc.

Condensed Consolidated Statements of Equity

(Unaudited)(In thousands, except per share data)


		Additional<br><br>Paid-in<br><br>Capital			Treasury<br><br>Shares			Accumulated<br><br>Other<br><br>Comprehensive Income<br><br>(Loss)			Retained<br><br>Earnings			Noncontrolling<br><br>Interests			Total
Balance at December 31, 2018	96	$	224,396		$	(35,300	)	$	(6,387	)	$	647,517		$	46,442		$	876,764
Net loss											(13,993		)	(155		)	(14,148		)
Other comprehensive loss								(2,770		)							(2,770		)
Amounts reclassified from accumulated other comprehensive loss								11,631									11,631
Contributions received from noncontrolling interest														4,715			4,715
Adoption of accounting standard, net of income tax of (237)											(711		)				(711		)
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of 0 (740 shares)		(22,756		)	27,944												5,188
Dividends declared (0.17 per common share)											(5,529		)				(5,529		)
Shares issued for acquisition		123,105															123,146
Restricted share award dividend equivalents		8			140						(148		)				—
Balance at March 31, 2019	137	$	324,753		$	(7,216	)	$	2,474		$	627,136		$	51,002		$	998,286
Balance at December 31, 2019	137	$	345,359		$	(7,342	)	$	(7,231	)	$	642,687		$	222,045		$	1,195,655
Net loss											(37,662		)	(13,449		)	(51,111		)
Other comprehensive loss								(20,974		)							(20,974		)
Amounts reclassified from accumulated other comprehensive loss								556									556
Contributions from noncontrolling interest														3,307			3,307
Distributions to noncontrolling interest														(10,298		)	(10,298		)
Stock awards, stock option exercises and other shares issued to employees and directors, net of income tax of 0 (181 shares)		(3,977		)	6,452												2,475
Dividends declared (0.175 per common share)											(5,748		)				(5,748		)
Restricted share award dividend equivalents					238						(238		)				—
Balance at March 31, 2020	137	$	341,382		$	(652	)	$	(27,649	)	$	599,039		$	201,605		$	1,113,862

All values are in US Dollars.

See Notes to Condensed Consolidated Financial Statements

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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”), its 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 non-controlling interest. 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.

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, 2020. An unaudited Condensed Consolidated Balance Sheet as of March 31, 2019 has been included as the Company operates in several seasonal industries.

The Condensed Consolidated Balance Sheet data at December 31, 2019 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, 2019 (the “2019 Form 10-K”).

Recently Adopted Accounting Guidance

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The FASB issued subsequent amendments to the initial guidance in November 2018, April 2019 and May 2019 with ASU 2018-19, ASU 2019-04 and ASU 2019-05, respectively. This update changes the accounting for credit losses on loans and held-to-maturity debt securities and requires a current expected credit loss (CECL) approach to determine the allowance for credit losses. This includes allowances for trade receivables. Effective January 1, 2020, we adopted ASU 2016-13 using the modified retrospective transition method. This ASU amends the impairment model to utilize an expected loss methodology in place of the incurred loss methodology for financial instruments, including trade receivables, and off-balance sheet credit exposures. The amendment requires entities to consider a broader range of information to estimate expected credit losses, which may result in earlier recognition of losses. The impact of adopting this new standard on the Condensed Consolidated Financial Statements was not material.

Cloud Computing Software

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This ASU reduces the complexity of accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. The guidance is effective for fiscal years beginning after December 15, 2019. The adoption of this standard effective January 1, 2020 on the consolidated financial statements is not material.

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Reference Rate Reform (Topic 848)

In March 2020, the FASB concluded its reference rate reform project and issued ASU 2020-04, Reference Rate Reform (Topic 848). London Interbank Offered Rate (LIBOR) is a benchmark interest rate referenced in a variety of agreements that are used by all types of entities. At the end of 2021, banks will no longer be required to report information that is used to determine LIBOR. As a result, LIBOR could be discontinued. Other interest rates used globally could also be discontinued for similar reasons. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The optional amendments are effective for all entities as of March 12, 2020, through December 31, 2022. The Company has elected to adopt ASU 2020-04 immediately for all optional expedients provided for contract modification accounting as permissible under the standard. The impact of executing the standard should the need arise will be disclosed, however, at this time there has been no impact to our consolidated financial statements.

Recent Accounting Guidance Issued Not Yet Effective

Simplifying the Accounting for Income Taxes

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The provisions of this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The impact of this update on our consolidated financial statements is currently being assessed. At this time the Company does not plan to early adopt the standard.

2. Inventories

Major classes of inventories are as follows:

(in thousands)	March 31, <br>2020		December 31, <br>2019		March 31, <br>2019
Grain and other agricultural products	$	750,281	$	907,482	$	812,361
Frac sand and propane	5,723		15,438		8,172
Ethanol and co-products	87,706		95,432		16,302
Plant nutrients and cob products	178,028		146,164		183,886
Railcar repair parts	6,338		6,020		5,744
Total Inventories	$	1,028,076	$	1,170,536	$	1,026,465

Inventories on the Condensed Consolidated Balance Sheets do not include 3.9 million, 6.4 million and 1.9 million bushels of grain held in storage for others as of March 31, 2020, December 31, 2019 and March 31, 2019, 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.

In the first quarter of 2020, the Company recorded a $10.6 million lower of cost or net realizable value charge related to lower ethanol market prices and decreased demand as a result of the COVID-19 pandemic.

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3. Property, Plant and Equipment

The components of Property, plant and equipment, net are as follows:

(in thousands)	March 31, <br>2020		December 31, <br>2019		March 31, <br>2019
Land	$	40,336	$	40,442	$	39,552
Land improvements and leasehold improvements	95,327		103,148		82,681
Buildings and storage facilities	381,258		373,961		337,631
Machinery and equipment	861,812		835,156		481,454
Construction in progress	41,824		59,993		151,895
	1,420,557		1,412,700		1,093,213
Less: accumulated depreciation	498,972		474,282		421,408
Property, plant and equipment, net	$	921,585	$	938,418	$	671,805

Depreciation expense on property, plant and equipment was $31.0 million and $17.9 million for the three months ended March 31, 2020 and 2019, respectively.

Rail Group Assets

The components of Rail Group assets leased to others are as follows:

(in thousands)	March 31, <br>2020		December 31, <br>2019		March 31, <br>2019
Rail Group assets leased to others	$	740,809	$	723,004	$	660,747
Less: accumulated depreciation	143,740		138,706		123,118
Rail Group assets, net	$	597,069	$	584,298	$	537,629

Depreciation expense on Rail Group assets leased to others amounted to $7.7 million and $6.7 million for the three months ended March 31, 2020 and 2019, respectively.

4. Debt

Short-term and long-term debt at March 31, 2020, December 31, 2019 and March 31, 2019 consisted of the following:	(in thousands)	March 31, <br>2020		December 31, <br>2019		March 31, <br>2019
Short-term Debt – Non-Recourse	$	83,791	$	54,029	$	97,304
Short-term Debt – Recourse	308,659		93,002		337,000
Total Short-term Debt	$	392,450	$	147,031	$	434,304
Current Maturities of Long-term Debt – Non-Recourse	$	5,212	$	9,545	$	7,793
Current Maturities of Long-term Debt – Recourse	75,546		53,354		47,367
Total Current Maturities of Long-term Debt	$	80,758	$	62,899	$	55,160
Long-term Debt, Less: Current Maturities – Non-Recourse	$	329,462	$	330,251	$	177,955
Long-term Debt, Less: Current Maturities – Recourse	658,064		685,997		804,070
Total Long-term Debt, Less: Current Maturities	$	987,526	$	1,016,248	$	982,025

The total borrowing capacity of the Company's lines of credit at March 31, 2020 was $1,684.0 million of which the Company had a total of $1,006.4 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. The Company is in compliance with all financial covenants as of March 31, 2020.

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5. Derivatives

The Company’s operating results are affected by changes to commodity prices. The Trade and Ethanol businesses have established “unhedged” position limits (the amount of a commodity, either owned or contracted for, that does not have an offsetting derivative contract to lock in the price). 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 grain 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, 2020, December 31, 2019 and March 31, 2019, 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 noncurrent commodity derivative assets (or liabilities) on the Condensed Consolidated Balance Sheets:

	March 31, 2020				December 31, 2019					March 31, 2019
(in thousands)	Net<br><br>derivative<br><br>asset<br><br>position		Net<br><br>derivative<br><br>liability<br><br>position		Net<br><br>derivative<br><br>asset<br><br>position			Net<br><br>derivative<br><br>liability<br><br>position		Net<br><br>derivative<br><br>asset<br><br>position		Net<br><br>derivative<br><br>liability<br><br>position
Cash collateral paid	$	22,855	$	—	$	56,005		$	—	$	21,751	$	—
Fair value of derivatives	20,977		—		(10,323		)	—		38,580		—
Balance at end of period	$	43,832	$	—	$	45,682		$	—	$	60,331	$	—

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The following table presents, on a gross basis, current and noncurrent commodity derivative assets and liabilities:

	March 31, 2020
(in thousands)	Commodity Derivative Assets - Current			Commodity Derivative Assets - Noncurrent			Commodity Derivative Liabilities - Current			Commodity Derivative Liabilities - Noncurrent			Total
Commodity derivative assets	$	164,700		$	3,240		$	9,648		$	142		$	177,730
Commodity derivative liabilities	(38,485		)	(119		)	(100,139		)	(2,667		)	(141,410		)
Cash collateral paid	22,855			—			—			—			22,855
Balance sheet line item totals	$	149,070		$	3,121		$	(90,491	)	$	(2,525	)	$	59,175		December 31, 2019
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands)	Commodity Derivative Assets - Current			Commodity Derivative Assets - Noncurrent			Commodity Derivative Liabilities - Current			Commodity Derivative Liabilities - Noncurrent			Total
Commodity derivative assets	$	92,429		$	1,045		$	7,439		$	18		$	100,931
Commodity derivative liabilities	(40,571		)	(96		)	(54,381		)	(523		)	(95,571		)
Cash collateral paid	56,005			—			—			—			56,005
Balance sheet line item totals	$	107,863		$	949		$	(46,942	)	$	(505	)	$	61,365
	March 31, 2019
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
(in thousands)	Commodity Derivative Assets - Current			Commodity Derivative Assets - Noncurrent			Commodity Derivative Liabilities - Current			Commodity Derivative Liabilities - Noncurrent			Total
Commodity derivative assets	$	142,262		$	3,781		$	665		$	93		$	146,801
Commodity derivative liabilities	(5,736		)	(24		)	(67,288		)	(3,914		)	(76,962		)
Cash collateral paid	21,751			—			—			—			21,751
Balance sheet line item totals	$	158,277		$	3,757		$	(66,623	)	$	(3,821	)	$	91,590

The net pretax gains and losses on commodity derivatives not designated as hedging instruments included in the Company’s Condensed Consolidated Statements of Operations and the line item in which they are located for the three and three months ended March 31, 2020 and 2019 are as follows:

	Three months ended March 31,
(in thousands)	2020		2019
Gains on commodity derivatives included in cost of sales and merchandising revenues	$	30,960	$	66,419

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The Company had the following volume of commodity derivative contracts outstanding (on a gross basis) at March 31, 2020, December 31, 2019 and March 31, 2019:

	March 31, 2020
Commodity (in thousands)	Number of Bushels	Number of Gallons	Number of Pounds	Number of Tons
Non-exchange traded:
Corn	555,782	—	—	—
Soybeans	33,950	—	—	—
Wheat	92,374	—	—	—
Oats	56,582	—	—	—
Ethanol	—	103,252	—	—
Corn oil	—	—	6,275	—
Other	18,734	1,500	296	2,010
Subtotal	757,422	104,752	6,571	2,010
Exchange traded:
Corn	165,295	—	—	—
Soybeans	37,875	—	—	—
Wheat	59,135	—	—	—
Oats	1,490	—	—	—
Ethanol	—	44,440	—	—
Propane	—	11,760	—	—
Other	—	11,970	—	213
Subtotal	263,795	68,170	—	213
Total	1,021,217	172,922	6,571	2,223
	December 31, 2019
---	---	---	---	---
Commodity (in thousands)	Number of Bushels	Number of Gallons	Number of Pounds	Number of Tons
Non-exchange traded:
Corn	552,359	—	—	—
Soybeans	34,912	—	—	—
Wheat	100,996	—	—	—
Oats	24,700	—	—	—
Ethanol	—	116,448	—	—
Corn oil	—	—	14,568	—
Other	11,363	4,000	305	2,263
Subtotal	724,330	120,448	14,873	2,263
Exchange traded:
Corn	221,740	—	—	—
Soybeans	39,145	—	—	—
Wheat	68,171	—	—	—
Oats	2,090	—	—	—
Ethanol	—	175,353	—	—
Propane	—	5,166	—	—
Other	—	15	—	232
Subtotal	331,146	180,534	—	232
Total	1,055,476	300,982	14,873	2,495

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	March 31, 2019
Commodity (in thousands)	Number of Bushels	Number of Gallons	Number of Pounds	Number of Tons
Non-exchange traded:
Corn	624,612	—	—	—
Soybeans	42,859	—	—	—
Wheat	118,909	—	—	—
Oats	26,361	—	—	—
Ethanol	—	233,420	—	—
Corn oil	—	—	6,733	—
Other	5,574	2,032	6	2,508
Subtotal	818,315	235,452	6,739	2,508
Exchange traded:
Corn	197,210	—	—	—
Soybeans	47,860	—	—	—
Wheat	103,955	—	—	—
Oats	770	—	—	—
Ethanol	—	110,758	—	—
Gasoline	—	12,936	—	—
Propane	—	14,784	—	—
Other	2	—	—	205
Subtotal	349,797	138,478	—	205
Total	1,168,112	373,930	6,739	2,713

Interest Rate and Other Derivatives

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The gains or losses on the derivatives are recorded in Other Comprehensive Income (Loss) and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.

At March 31, 2020, December 31, 2019 and March 31, 2019, the Company had recorded the following amounts for the fair value of the Company's other derivatives:	(in thousands)	March 31, 2020			December 31, 2019			March 31, 2019
Derivatives not designated as hedging instruments
Interest rate contracts included in Other long-term liabilities	$	(1,913	)	$	(1,007	)	$	(4,494	)
Foreign currency contracts included in Other current assets (Accrued expenses and other current liabilities)	$	440		$	2,742		$	(344	)
Derivatives designated as hedging instruments
Interest rate contracts included in Accrued expenses and other current liabilities	$	(8,081	)	$	(3,118	)	$	—
Interest rate contracts included in Other long-term assets (Other long-term liabilities)	$	(22,620	)	$	(9,382	)	$	(4,552	)

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The recording of derivatives gains and losses and the financial statement line in which they are located are as follows:		Three months ended March 31,
(in thousands)	2020			2019
Derivatives not designated as hedging instruments
Interest rate derivative gains (losses) included in Interest income (expense), net	$	(784	)	$	(990	)
Foreign currency derivative gains (losses) included in Other income (loss), net	$	—		$	(1,467	)
Derivatives designated as hedging instruments
Interest rate derivative gains (losses) included in Other Comprehensive Income (Loss)	$	(18,182	)	$	(4,991	)
Interest rate derivatives gains (losses) included in Interest income (expense), net	$	(1,290	)	$	165

Outstanding interest rate derivatives, as of March 31, 2020, are as follows:

Interest Rate Hedging Instrument	Year Entered	Year of Maturity	Initial Notional Amount<br><br>(in millions)		Description	Interest Rate
Long-term
Swap	2014	2023	$	23.0	Interest rate component of debt - not accounted for as a hedge	1.9%
Collar	2016	2021	$	40.0	Interest rate component of debt - not accounted for as a hedge	3.5% to 4.8%
Swap	2017	2022	$	20.0	Interest rate component of debt - accounted for as a hedge	1.8%
Swap	2018	2023	$	10.0	Interest rate component of debt - accounted for as a hedge	2.6%
Swap	2018	2025	$	20.0	Interest rate component of debt - accounted for as a hedge	2.7%
Swap	2018	2021	$	40.0	Interest rate component of debt - accounted for as a hedge	2.6%
Swap	2019	2021	$	25.0	Interest rate component of debt - accounted for as a hedge	2.5%
Swap	2019	2021	$	50.0	Interest rate component of debt - accounted for as a hedge	2.5%
Swap	2019	2025	$	100.0	Interest rate component of debt - accounted for as a hedge	2.5%
Swap	2019	2025	$	50.0	Interest rate component of debt - accounted for as a hedge	2.5%
Swap	2019	2025	$	50.0	Interest rate component of debt - accounted for as a hedge	2.5%
Swap	2020	2023	$	50.0	Interest rate component of debt - accounted for as a hedge	0.8%
Swap	2020	2023	$	50.0	Interest rate component of debt - accounted for as a hedge	0.7%
Swap	2020	2030	$	50.0	Interest rate component of debt - accounted for as a hedge	0.0% to 0.8%
Swap	2020	2030	$	50.0	Interest rate component of debt - accounted for as a hedge	0.0% to 0.8%

6. Revenue

Many of the Company’s revenues are generated from contracts that are outside the scope of ASC 606 and thus are accounted for under other accounting standards. Specifically, many of the Company's Trade and Ethanol sales contracts are derivatives under ASC 815, Derivatives and Hedging and the Rail Group's leasing revenue is accounted for under ASC 842, Leases. The breakdown of revenues between ASC 606 and other standards is as follows:

	Three months ended March 31,
(in thousands)	2020		2019
Revenues under ASC 606	$	347,502	$	315,172
Revenues under ASC 842	25,551		28,868
Revenues under ASC 815	1,480,052		1,632,752
Total Revenues	$	1,853,105	$	1,976,792

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The remainder of this note applies only to those revenues that are accounted for under ASC 606.

Disaggregation of revenue

The following tables disaggregate revenues under ASC 606 by major product/service line for the three months ended March 31, 2020 and 2019, respectively:

	Three months ended March 31, 2020
(in thousands)	Trade		Ethanol		Plant Nutrient		Rail		Total
Specialty nutrients	$	—	$	—	$	73,231	$	—	$	73,231
Primary nutrients	—		—		45,690		—		45,690
Services	1,686		—		182		8,736		10,604
Ethanol products and co-products	53,165		101,698		—		—		154,863
Frac sand and propane	49,875		—		—		—		49,875
Other	3,989		616		5,810		2,824		13,239
Total	$	108,715	$	102,314	$	124,913	$	11,560	$	347,502
	Three months ended March 31, 2019
---	---	---	---	---	---	---	---	---	---	---
(in thousands)	Trade		Ethanol		Plant Nutrient		Rail		Total
Specialty nutrients	$	3,938	$	—	$	68,400	$	—	$	72,338
Primary nutrients	427		—		53,089		—		53,516
Service	825		3,436		162		9,947		14,370
Ethanol products and co-products	62,758		21,472		—		—		84,230
Frac sand and propane	80,463		—		—		—		80,463
Other	1,157		—		6,874		2,224		10,255
Total	$	149,568	$	24,908	$	128,525	$	12,171	$	315,172

Approximately 3% and 5% of revenues accounted for under ASC 606 during the three months ended March 31, 2020 and 2019, respectively, and are recorded over time which primarily relates to service revenues noted above.

Contract balances

The balances of the Company’s contract liabilities were $65.8 million and $28.5 million as of March 31, 2020 and December 31, 2019, respectively. The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. The main driver of the contract liabilities balance is payments for primary and specialty nutrients received in advance of fulfilling our performance obligations under our customer contracts. The primary and specialty business records contract liabilities for payments received in advance of fulfilling our performance obligations under our customer contracts. Further, due to seasonality of this business, contract liabilities were built up in the first quarter of the year.

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7. Income Taxes

On a quarterly basis, the Company estimates the effective tax rate expected to be applicable for the full year and makes changes, if necessary, based on new information or events. The estimated annual effective tax rate is forecasted based on actual historical information and forward-looking estimates and is used to provide for income taxes in interim reporting periods. The Company also recognizes the tax impact of certain unusual or infrequently occurring items, such as the effects of changes in tax laws or rates and impacts from settlements with tax authorities, discretely in the quarter in which they occur.

For the three months ended March 31, 2020, the Company recorded an income tax benefit of $1.5 million at an effective income tax rate of

2.8%

. The annual effective tax rate differs from the statutory U.S. Federal tax rate as the tax benefit from consolidated pre-tax losses is completely offset by the portion of losses owned by non-controlling interests that do not provide for a tax benefit. The decrease in effective tax rate for the three months ended March 31, 2020 as compared to the same period last year was primarily attributed to the tax expense generated from the current period loss before taxes at the estimated annual effective tax rate, offset by tax benefits from anticipated net operating loss carrybacks as result of the Coronavirus Aid, Relief, and. Economic Security Act ("CARES") Act. For the three months ended March 31, 2019, the Company recorded an income tax benefit of $5.4 million at an effective income tax rate of

27.8%

The 2020 effective tax rate can be affected by variances in the estimates and amounts of taxable income among the various states, entities and activity types, realization of tax credits, adjustments from resolution of tax matters under review, valuation allowances and the company’s assessment of its liability for uncertain tax positions. The amount of unrecognized tax benefits for uncertain tax positions was $25.4 million as of March 31, 2020, and $0.6 million for the period ended March 31, 2019. The unrecognized tax benefits of $25.4 million include $21.7 million recorded as a reduction of the deferred tax asset and refundable credits associated with the R&D Credits.

On March 27, 2020, President Trump signed into U.S. federal law the CARES Act, which is aimed at providing emergency assistance and health care for individuals, families and businesses affected by the Coronavirus (“COVID-19”) pandemic and generally supporting the U.S. economy. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. In particular, under the CARES Act, (i) for taxable years beginning before 2021, net operating loss carryforwards and carrybacks may offset 100% of taxable income, (ii) NOLs arising in 2018, 2019, and 2020 taxable years may be carried back to each of the preceding five years to generate a refund and (iii) for taxable years beginning in 2019 and 2020, the base for interest deductibility is increased from 30% to 50% of EBITDA. The Company has analyzed the impact of the CARES Act to determine the estimated impact on 2019 filing positions that could be carried back to prior tax years, and recorded a financial statement benefit of $6.6 million. On April 17, 2020, the Internal Revenue Service issued Revenue Procedure 2020-25, allowing for companies to revoke an election out of bonus depreciation. The Company is currently evaluating the impact of this additional guidance.

8. Accumulated Other Comprehensive Income (Loss)

The following tables summarize the after-tax components of accumulated other comprehensive income (loss) attributable to the Company for the three months ended March 31, 2020 and 2019:

		Changes in Accumulated Other Comprehensive Income (Loss) by Component (a)
		Three months ended March 31, 2020
(in thousands)		Cash Flow Hedges			Foreign Currency Translation Adjustment			Investment in Convertible Preferred Securities		Defined Benefit Plan Items			Total
Beginning Balance		$	(9,443	)	$	1,065		$	258	$	889		$	(7,231	)
	Other comprehensive loss before reclassifications	(14,390		)	(6,639		)	—		55			$	(20,974	)
	Amounts reclassified from accumulated other comprehensive income (loss)	727			—			—		(171		)	$	556
Net current-period other comprehensive income (loss)		(13,663		)	(6,639		)	—		(116		)	(20,418		)
Ending balance		$	(23,106	)	$	(5,574	)	$	258	$	773		$	(27,649	)

(a) All amounts are net of tax. Amounts in parentheses indicate debits.

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		Changes in Accumulated Other Comprehensive Income (Loss) by Component (a)
		Three months ended March 31, 2019
(in thousands)		Cash Flow Hedges			Foreign Currency Translation Adjustment			Investment in Convertible Preferred Securities		Defined Benefit Plan Items			Total
Beginning Balance		$	(126	)	$	(11,550	)	$	258	$	5,031		$	(6,387	)
	Other comprehensive loss before reclassifications	(3,758		)	943			—		45			$	(2,770	)
	Amounts reclassified from accumulated other comprehensive income (loss) (b)	136			11,666			—		(171		)	$	11,631
Net current-period other comprehensive income (loss)		(3,622		)	12,609			—		(126		)	8,861
Ending balance		$	(3,748	)	$	1,059		$	258	$	4,905		$	2,474

(a) All amounts are net of tax. Amounts in parentheses indicate debits.

(b) Reflects foreign currency translation adjustments attributable to the consolidation of Thompsons Limited.

	Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a)
(in thousands)	Three months ended March 31, 2020
Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)			Affected Line Item in the Statement Where Net Income Is Presented
Defined Benefit Plan Items
Amortization of prior-service cost	$	(228	)	(b)
	(228		)	Total before tax
	57			Income tax provision (benefit)
	$	(171	)	Net of tax
Cash Flow Hedges
Interest payments	$	969		Interest expense
	969			Total before tax
	(242		)	Income tax provision
	$	727		Net of tax
Total reclassifications for the period	$	556		Net of tax

(a) Amounts in parentheses indicate credits to profit/loss.

(b) This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost.

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	Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (a)
(in thousands)	Three months ended March 31, 2019
Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)			Affected Line Item in the Statement Where Net Income Is Presented
Defined Benefit Plan Items
Amortization of prior-service cost	$	(228	)	(b)
	(228		)	Total before tax
	57			Income tax provision (benefit)
	$	(171	)	Net of tax
Cash Flow Hedges
Interest payments	$	182		Interest expense
	182			Total before tax
	(46		)	Income tax provision
	$	136		Net of tax
Foreign Currency Translation Adjustment
Realized loss on pre-existing investment	$	11,666		Other income, net
	11,666			Total before tax
	—			Income tax provision
	$	11,666		Net of tax
Total reclassifications for the period	$	11,631		Net of tax

(a) Amounts in parentheses indicate credits to profit/loss.

(b) This accumulated other comprehensive loss component is included in the computation of net periodic benefit cost.

9. Earnings Per Share

(in thousands, except per common share data)	Three months ended March 31,
	2020			2019
Net loss attributable to The Andersons, Inc.	$	(37,662	)	$	(13,993	)
Earnings per share – basic:
Weighted average shares outstanding – basic	32,821			32,501
Earnings per common share – basic	$	(1.15	)	$	(0.43	)
Earnings per share – diluted:
Weighted average shares outstanding – basic	32,821			32,501
Effect of dilutive awards	—			—
Weighted average shares outstanding – diluted	32,821			32,501
Earnings per common share – diluted	$	(1.15	)	$	(0.43	)

All outstanding share awards were antidilutive for the three months ended March 31, 2020 and March 31, 2019 as the Company incurred a net loss in both periods.

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10. Fair Value Measurements

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2020, December 31, 2019 and March 31, 2019:

(in thousands)	March 31, 2020
Assets (liabilities)	Level 1			Level 2			Level 3		Total
Commodity derivatives, net (a)	$	43,832		$	15,343		$	—	$	59,175
Provisionally priced contracts (b)	(94,834		)	(51,061		)	—		(145,895		)
Convertible preferred securities (c)	—			—			8,654		8,654
Other assets and liabilities (d)	5,373			(32,614		)	—		(27,241		)
Total	$	(45,629	)	$	(68,332	)	$	8,654	$	(105,307	)
(in thousands)	December 31, 2019
---	---	---	---	---	---	---	---	---	---	---	---
Assets (liabilities)	Level 1			Level 2			Level 3		Total
Commodity derivatives, net (a)	$	45,682		$	15,683		$	—	$	61,365
Provisionally priced contracts (b)	(118,414		)	(68,237		)	—		(186,651		)
Convertible preferred securities (c)	—			—			8,404		8,404
Other assets and liabilities (d)	9,469			(13,507		)	—		(4,038		)
Total	$	(63,263	)	$	(66,061	)	$	8,404	$	(120,920	)	(in thousands)	March 31, 2019
---	---	---	---	---	---	---	---	---	---	---	---
Assets (liabilities)	Level 1			Level 2			Level 3		Total
Commodity derivatives, net (a)	$	60,331		$	31,259		$	—	$	91,590
Provisionally priced contracts (b)	(48,430		)	(49,393		)	—		(97,823		)
Convertible preferred securities (c)	—			—			7,404		7,404
Other assets and liabilities (d)	5,772			(4,494		)	—		1,278
Total	$	17,673		$	(22,628	)	$	7,404	$	2,449
(a)	Includes associated cash posted/received as collateral
---	---
(b)	Included in "Provisionally priced contracts" are those instruments based only on underlying futures values (Level 1) and delayed price contracts (Level 2)
---	---
(c)	Recorded in “Other assets, net” on the Company’s Consolidated Balance Sheets related to certain available for sale securities.
---	---
(d)	Included in other assets and liabilities are assets held by the Company to fund deferred compensation plans, ethanol risk management contracts, and foreign exchange derivative contracts (Level 1) and interest rate derivatives (Level 2).
---	---

Level 1 commodity derivatives reflect the fair value of the exchanged-traded futures and options contracts that the Company holds, net of the cash collateral, that the Company has in its margin account.

The majority of the Company’s assets and liabilities measured at fair value are based on the market approach valuation technique. With the market approach, fair value is derived using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

The Company’s net commodity derivatives primarily consist of futures or options contracts via regulated exchanges and contracts with producers or customers under which the future settlement date and bushels (or gallons in the case of ethanol contracts) of commodities to be delivered (primarily wheat, corn, soybeans and ethanol) are fixed and under which the price may or may not be fixed. Depending on the specifics of the individual contracts, the fair value is derived from the futures or options prices quoted on various exchanges for similar commodities and delivery dates as well as observable quotes for local basis adjustments (the difference, which is attributable to local market conditions, between the quoted futures price and the local cash price). Because “basis” for a particular commodity and location typically has multiple quoted prices from other agribusinesses in the same geographical vicinity and is used as a common pricing mechanism in the agribusiness industry, we have concluded that “basis” is typically a Level 2 fair value input for purposes of the fair value disclosure requirements related to our commodity derivatives, depending on the specific commodity. Although nonperformance risk, both of the Company and the counterparty, is present in each of these commodity contracts and is a component of the estimated fair values, based on the Company’s historical experience with its producers and customers and the Company’s knowledge of their businesses, the Company does not view nonperformance risk to be a significant input to fair value for these commodity contracts.

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These fair value disclosures exclude physical grain inventories measured at net realizable value. The net realizable value used to measure the Company’s agricultural commodity inventories is the fair value (spot price of the commodity in an exchange), less cost of disposal and transportation based on the local market. This valuation would generally be considered Level 2. The amount is disclosed in Note 2 Inventories. Changes in the net realizable value of commodity inventories are recognized as a component of cost of sales and merchandising revenues.

Provisionally priced contract liabilities are those for which the Company has taken ownership and possession of grain, but the final purchase price has not been established. In the case of payables where the unpriced portion of the contract is limited to the futures price of the underlying commodity or we have delivered provisionally priced grain and a subsequent payable or receivable is set up for any future changes in the grain price, quoted exchange prices are used and the liability is deemed to be Level 1 in the fair value hierarchy. For all other unpriced contracts which include variable futures and basis components, the amounts recorded for delayed price contracts are determined on the basis of local grain market prices at the balance sheet date and, as such, are deemed to be Level 2 in the fair value hierarchy.

The risk management contract liability allows related ethanol customers to effectively unprice the futures component of their inventory for a period of time, subjecting the bushels to market fluctuations. The Company records an asset or liability for the market value changes of the commodities over the life of the contracts based on quoted exchange prices and as such, the balance is deemed to be Level 1 in the fair value hierarchy.

The convertible preferred securities are interests in several early-stage enterprises that may be in various forms, such as convertible debt or preferred equity securities.

A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows:

	Convertible Preferred Securities
(in thousands)	2020		2019
Assets (liabilities) at January 1,	$	8,404	$	7,154
Additional Investments	250		250
Assets (liabilities) at March 31,	$	8,654	$	7,404

The following tables summarize quantitative information about the Company's Level 3 fair value measurements as of March 31, 2020, December 31, 2019 and March 31, 2019:

	Quantitative Information about Recurring Level 3 Fair Value Measurements
(in thousands)	Fair Value as of March 31, 2020		Valuation Method	Unobservable Input	Weighted Average
Convertible preferred securities (a)	$	8,654	Implied based on market prices	N/A	N/A	(in thousands)	Fair Value as of December 31, 2019	Valuation Method	Unobservable Input	Weighted Average
---	---	---	---	---	---
Convertible preferred securities (a)	$	8,404	Implied based on market prices	N/A	N/A
(in thousands)	Fair Value as of March 31, 2019		Valuation Method	Unobservable Input	Weighted Average
---	---	---	---	---	---
Convertible preferred securities (a)	$	7,404	Implied based on market prices	N/A	N/A

(a) The Company considers observable price changes and other additional market data available to estimate fair value, including additional capital raising, internal valuation models, progress towards key business milestones, and other relevant market data points.

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	Quantitative Information about Non-recurring Level 3 Fair Value Measurements
(in thousands)	Fair Value as of December 31, 2019		Valuation Method	Unobservable Input	Weighted Average
Frac sand assets (a)	$	16,546	Third party appraisal	Various	N/A
Real property (b)	608		Market approach	Various	N/A
Equity method investment (c)	12,424		Discounted cash flow analysis	Various	N/A

(a) The Company recognized impairment charges on long lived related to its frac sand business. The fair value of the assets were determined using prior transactions and third-party appraisals. These measures are considered Level 3 inputs on a nonrecurring basis.

(b) The Company recognized impairment charges on certain Trade assets and measured the fair value using Level 3 inputs on a nonrecurring basis. The fair value of the assets were determined using prior transactions in the local market and a recent sale of comparable Trade group assets held by the Company.

(c) The Company recorded an other-than-temporary impairment charge on an existing equity method investment. The fair value of the investment was determined using a discounted cash flow analysis.

There were no non-recurring fair value measurements as of March 31, 2020 and March 31, 2019.

Fair Value of Financial Instruments

The fair value of the Company’s long-term debt is estimated using quoted market prices or discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. As such, the Company has concluded that the fair value of long-term debt is considered Level 2 in the fair value hierarchy.

(in thousands)	March 31, <br>2020		December 31, <br>2019		March 31, <br>2019
Fair value of long-term debt, including current maturities	$	1,113,042	$	1,096,010	$	1,043,503
Fair value in excess of carrying value (a)	36,461		8,257		2,318

(a) Carrying value used for this purpose excludes unamortized debt issuance costs.

The fair value of the Company’s cash equivalents, accounts receivable and accounts payable approximate their carrying value as they are close to maturity.

11. Related Parties

In the ordinary course of business and on an arms-length basis, the Company will mainly enter into related party transactions with the minority shareholders of the Company's ethanol operations and several equity method investments that the Company holds, along with other related parties.

The following table sets forth the related party transactions entered into for the time periods presented:

	Three months ended March 31,
(in thousands)	2020		2019
Sales revenues	$	54,694	$	61,168
Service fee revenues (a)	—		4,112
Purchases of product and capital assets	15,577		169,229
Lease income (b)	147		1,014
Labor and benefits reimbursement (c)	—		3,857
(a)	Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions. These revenues are now eliminated in consolidation as a result of the TAMH merger.
---	---
(b)	Lease income includes certain railcars leased to related parties and the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities from the prior period and are now eliminated in consolidation as a result of the TAMH merger.
---	---
(c)	Prior to the TAMH merger the Company provided all operations labor to the unconsolidated ethanol LLCs and charged them an amount equal to the Company's costs of the related services for the prior periods.
---	---

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(in thousands)	March 31, 2020		December 31, 2019		March 31, 2019
Accounts receivable (d)	$	6,586	$	10,603	$	20,134
Accounts payable (e)	6,364		12,303		24,644
(d)	Accounts receivable represents amounts due from related parties for the sale of ethanol and other various items.
---	---
(e)	Accounts payable represents amounts due to related parties for purchases of ethanol equipment and other various items.
---	---

12. Segment Information

The Company’s operations include four reportable business segments that are distinguished primarily on the basis of products and services offered. The Trade business includes commodity merchandising and the operation of terminal grain elevator facilities. The Ethanol business produces ethanol through its five co-owned and fully consolidated ethanol production facilities as well as purchases and sells ethanol and ethanol co-products. The Plant Nutrient business manufactures and distributes agricultural inputs, primarily fertilizer, to dealers and farmers, along with turf care and corncob-based products. Rail operations include the leasing, marketing and fleet management of railcars and other assets, railcar repair and metal fabrication. The Other category includes other corporate level costs not attributable to an operating segment.

The segment information below includes the allocation of expenses shared by one or more operating segments. Although management believes such allocations are reasonable, the operating information does not necessarily reflect how such data might appear if the segments were operated as separate businesses. Inter-segment sales are made at prices comparable to normal, unaffiliated customer sales. The Company does not have any customers who represent 10 percent or more of total revenue.		Three months ended March 31,
(in thousands)	2020		2019
Revenues from external customers
Trade	$	1,378,040	$	1,537,686
Ethanol	313,039		269,166
Plant Nutrient	124,913		128,525
Rail	37,113		41,415
Total	$	1,853,105	$	1,976,792
	Three months ended March 31,
---	---	---	---	---
(in thousands)	2020		2019
Inter-segment sales
Trade	$	609	$	181
Plant Nutrient	887		20
Rail	1,605		1,275
Total	$	3,101	$	1,476
	Three months ended March 31,
---	---	---	---	---	---	---
(in thousands)	2020			2019
Income (loss) before income taxes, net of noncontrolling interest
Trade	$	(9,983	)	$	(17,903	)
Ethanol	(23,976		)	3,011
Plant Nutrient	(1,192		)	(3,929		)
Rail	1,007			4,312
Other	(4,982		)	(4,926		)
Income (loss) before income taxes, net of noncontrolling interest	(39,126		)	(19,435		)
Noncontrolling interests	(13,449		)	(155		)
Income (loss) before income taxes	$	(52,575	)	$	(19,590	)

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(in thousands)	March 31, 2020		December 31, 2019		March 31, 2019
Identifiable assets
Trade	$	1,878,812	$	2,012,060	$	2,116,254
Ethanol	653,928		690,548		333,060
Plant Nutrient	434,512		383,781		455,529
Rail	658,271		693,931		642,596
Other	127,168		120,421		112,813
Total	$	3,752,691	$	3,900,741	$	3,660,252

13. Commitments and Contingencies

The Company is party to litigation, or threats thereof, both as defendant and plaintiff with some regularity, although individual cases that are material in size occur infrequently. As a defendant, the Company establishes reserves for claimed amounts that are considered probable and capable of estimation. If those cases are resolved for lesser amounts, the excess reserves are taken into income and, conversely, if those cases are resolved for larger than the amount the Company has accrued, the Company records additional expense. The Company believes it is unlikely that the results of its current legal proceedings for which it is the defendant, even if unfavorable, will be material. As a plaintiff, amounts that are collected can also result in sudden, non-recurring income.

Litigation results depend upon a variety of factors, including the availability of evidence, the credibility of witnesses, the performance of counsel, the state of the law, and the impressions of judges and jurors, any of which can be critical in importance, yet difficult, if not impossible, to predict. Consequently, cases currently pending, or future matters, may result in unexpected, and non-recurring losses, or income, from time to time. Finally, litigation results are often subject to judicial reconsideration, appeal and further negotiation by the parties, and as a result, the final impact of a particular judicial decision may be unknown for some time or may result in continued reserves to account for the potential of such post-verdict actions.

The Company recorded a $5.0 million reserve relating to an outstanding non-regulatory litigation claim, based upon preliminary settlement negotiations in the first quarter of 2019. The claim is in response to penalties and fines paid to regulatory entities by a previously unconsolidated subsidiary in 2018 for the settlement of matters which focused on certain trading activity.

The estimated losses for all other outstanding claims that are considered reasonably possible are not material.

14. Supplemental Cash Flow Information

Certain supplemental cash flow information, including noncash investing and financing activities for the three months ended March 31, 2020 and 2019 are as follows:

	Three months ended March 31,
(in thousands)	2020		2019
Supplemental disclosure of cash flow information
Interest paid	$	16,180	$	16,711
Noncash investing and financing activity
Dividends declared not yet paid	5,748		5,527
Capital projects incurred but not yet paid	8,459		15,974
Equity issued in conjunction with acquisition	—		123,146
Removal of pre-existing equity method investment	—		(159,459		)
Purchase price holdback/ other accrued liabilities	—		31,518

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15. Business Acquisition

On October 1, 2019, The Andersons entered into an agreement with Marathon to merge TAAE, TACE, TAME and the Company's wholly-owned subsidiary, The Andersons Denison Ethanol LLC into a new legal entity, The Andersons Marathon Holdings LLC. As a result of the merger, The Andersons and Marathon now own

50.1%

and

49.9%

of the equity in TAMH, respectively. Total consideration transferred by the Company to complete the acquisition of TAMH was $182.9 million. The company transferred non-cash consideration of $7.3 million and its equity values of the previously mentioned LLCs.

The purchase price allocation is preliminary, pending, finalization of deferred income taxes adjustments. A summarized preliminary purchase price allocation is as follows:

(in thousands)
Non-cash consideration	$	7,318
Investments contributed at fair value	124,662
Investment contributed at cost	50,875
Total purchase price consideration	$	182,855

The preliminary purchase price allocation at October 1, 2019, is as follows:

(in thousands)
Cash and cash equivalents	$	47,042
Accounts receivable	12,175
Inventories	31,765
Other current assets	2,638
Goodwill	2,726
Right of use asset	5,200
Other assets, net	861
Property, plant and equipment, net	321,380
	423,787
Trade and other payables	13,461
Accrued expense and other current liabilities	3,011
Other long-term liabilities	209
Long-term lease liabilities	2,230
Long-term debt, including current maturities	47,886
	66,797
Marathon Noncontrolling Interest	174,135
Net Assets Acquired	$	182,855
Removal of preexisting ownership interest	$	(88,426	)
Pretax gain on derecognition of preexisting ownership interest	$	36,286

Asset and liability account balances in the opening balance sheet above include the previously consolidated TADE investment balances at carryover basis.

The $2.7 million of goodwill recognized is primarily attributable to expected synergies and the assembled workforce of TAMH. None of the goodwill is expected to be deductible for income tax purposes.

The fair value in the opening balance sheet of the

49.9%

noncontrolling interest in TAMH was estimated to be $174.1 million. The fair value was estimated based on

49.9%

of the total equity value of TAMH based on the transaction price for the

50.1%

stake in TAMH, considering the consideration transferred noted above.

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Pro Forma Financial Information (Unaudited)

The summary pro forma financial information for the periods presented below gives effect to the TAMH acquisition as if it had occurred at January 1, 2019.

	Three months ended March 31,
(in thousands)	2020			2019
Net sales	$	1,853,105		$	2,031,510
Net income	(51,111		)	(15,228		)

Pro forma net income was also adjusted to account for the tax effects of the pro forma adjustments noted above using a statutory tax rate of

25%

. The pro forma amounts for net income above have been adjusted to reflect additional depreciation and amortization that would have been charged assuming the fair value adjustments to Property, plant and equipment had been applied on January 1, 2019 related to the TAMH merger.

Pro forma financial information is not necessarily indicative of the Company's actual results of operations if the acquisition had been completed at the date indicated, nor is it necessarily an indication of future operating results. Amounts do not include any operating efficiencies or cost savings that the Company believes are achievable.

16. Goodwill

During the quarter the Company completed a reorganization of its organization and internal structure whereby the Company reorganized its operations between the Trade and Ethanol segments to enhance operating decisions and assessing performance. On January 1, 2020, the Company moved its Distillers Dried Grains ("DDG") business from the Trade to Ethanol segment. The reorganization resulted in the reassignment of goodwill to the affected reporting units using a relative fair value approach. As a result of the reassignment and allocation, the Company performed an interim review of the carrying value of goodwill at the Trade and Ethanol segments for possible impairment on both a pre and post-reorganization basis. No impairment of goodwill was indicated at the pre-reorganization reporting units.

The changes in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2020 are as follows:

(in thousands)	Trade			Ethanol		Plant Nutrient		Rail		Total
Balance as of January 1, 2020	$	127,781		$	2,726	$	686	$	4,167	$	135,360
Reorganization (a)	(5,714		)	5,714		—		—		—
Balance as of March 31, 2020	$	122,067		$	8,440	$	686	$	4,167	$	135,360

(a) Reorganization related to move of the DDG business line from the Trade to Ethanol segment.

Due to the severe decline in ethanol prices, largely impacted by COVID-19 during the period, management determined that a triggering event occurred within the Ethanol segment. Accordingly, an interim impairment test was performed over the Ethanol group's goodwill as well as its other intangible and long-lived assets. Based on the results of the impairment test, the Ethanol segment did not record an impairment charge.

When performing our test for impairment, we measured each reporting unit's fair value using a combination of income and market approaches.

The income approach calculates the fair value of the reporting unit based on a discounted cash flow analysis, incorporating the weighted average cost of capital of a hypothetical third-party buyer. Significant estimates in the income approach include the following: discount rate, expected financial outlook and profitability of the reporting unit's business (all Level 3 inputs in the fair value hierarchy). Discount rates use the weighted average cost of capital for companies within our peer group, adjusted for specific company risk premium factors.

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The market approach uses the "Guideline Company" method, which calculates the fair value of the reporting unit based on a comparison of the reporting unit to comparable publicly traded companies. Significant estimates in the market approach model include identifying similar companies with comparable business factors such as size, growth, profitability, risk and return on investment, assessing comparable multiples, as well as consideration of control premiums. The blended approach assigns an equal weighting to each approach. The blended fair value of both approaches is then compared to the carrying value, and to the extent that fair value exceeds the carrying value, no impairment exists. However, to the extent the carrying value exceeds the fair value, an impairment is recorded.

The results of the goodwill impairment test within the Ethanol group supported the calculated fair value exceeding the carrying values by greater than 20%. However, as the fair value is highly sensitive to changes in assumptions, including interest rates and outlook for future volume and margins, general trends in the business and/or macro-economic factors could cause the estimated fair value of the reporting unit to fall below its carrying value.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

The following “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contains forward-looking statements which relate to future events or future financial performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. The reader is urged to carefully consider these risks and others, including those risk factors listed under Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2019 (“2019 Form 10-K”). In some cases, the reader can identify forward-looking statements by terminology such as may, anticipates, believes, estimates, predicts, or the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. These forward-looking statements relate only to events as of the date on which the statements are made and the Company undertakes no obligation, other than any imposed by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Critical Accounting Policies and Estimates

Our critical accounting policies and critical accounting estimates, as described in our 2019 Form 10-K, have not materially changed through the first quarter of 2020.

Executive Overview

Our operations are organized, managed and classified into four reportable business segments: Trade, Ethanol, Plant Nutrient, and Rail. Each of these segments is generally based on the nature of products and services offered.

The agricultural commodity-based business is one in which changes in selling prices generally move in relationship to changes in purchase prices. Therefore, increases or decreases in prices of the agricultural commodities that the business deals in will have a relatively equal impact on sales and cost of sales and a much less significant impact on gross profit. As a result, changes in sales between periods may not necessarily be indicative of the overall performance of the business and more focus should be placed on changes in gross profit.

The Company has ethanol production, merchandising and goodwill assets within the Ethanol segment. Due to an adverse change within the industry, the Company determined that a triggering event had occurred during the quarter for the asset group to be assessed for impairment. The asset group was determined to not be impaired in the first quarter, however, continuing adverse market conditions or alternative management decisions surrounding the future of these operations may result in future impairment considerations.

Further, the Company has considered the potential impact that the book value of the Company’s total shareholders’ equity exceeded the Company’s market capitalization for impairment indicators. Management ultimately concluded that, while the Company's shareholders equity exceeded the market capitalization for the period, an impairment triggering event had not occurred. The Company continues to believe that the share price is not an accurate reflection of its current value. While the adverse conditions are currently present and pervasive in the agriculture space during this time, the long-term outlook remains positive and we believe that the market’s impact on the Company’s equity value does not actually reflect the impact of these external factors on the Company. Further, due to internal reorganizations within the Plant Nutrient, Ethanol and Trade segments, certain portions of goodwill have been subject to a quantitative goodwill assessment during the period which resulted in no impairment charges. As a result of these tests, the Company concluded that no impairment existed as of March 31, 2020.

Recent Developments

For the first quarter of 2020, the global emergence of the novel strain of COVID-19 had a significant impact to the global economy, including several industries in which The Andersons operates. The government-induced stay-at-home orders reduced demand for gasoline, ethanol and corn, primarily impacting the Ethanol and Trade Groups. As previously announced the Company has idled its ethanol plants for extended maintenance shutdowns in an effort to maintain the Company's ethanol plants, protect employees and conserve cash. The future impacts of the COVID-19 pandemic on the Company’s business are highly uncertain at this time.

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The Company is a critical infrastructure industry as that term has been defined by The United States Department of Homeland Security, Cybersecurity and Infrastructure Agency, in its March 19, 2020 Memorandum. As COVID-19 continues to spread, the Company is currently conducting business as usual to the greatest extent possible in the current circumstances. The Company is taking a variety of measures to ensure the availability of its services throughout our network, promote the safety and security of our employees, and support the communities in which we operate. Certain modifications the Company has made in response to the COVID-19 pandemic include: implementing a period of working at home for all non-essential support staff; restricting employee business travel; strengthening clean workplace practices; reinforcing socially responsible sick leave recommendations; limiting visitor and third-party access to Company facilities; launching internal COVID-19 resources for employees; creating a pandemic response team comprised of employees and members of senior management; encouraging telephonic and video conference-based meetings along with other hygiene and social distancing practices recommended by health authorities including Health Canada, the U.S. Centers for Disease Control and Prevention, and the World Health Organization; and supplementing employment insurance payments and maintaining health benefit coverage of employees through the pandemic. The Company is responding to this crisis through measures designed to protect our workforce and preventing disruptions to the Company's operations within the North American agricultural supply chain. The Andersons service is deemed essential as part of the agricultural industry.

As previously announced, the Company’s annual meeting of shareholders, held on May 8, 2020, will be conducted via a virtual-only format by live webcast online for the first time. We have observed many other companies, taking precautionary and preemptive actions to address the COVID-19 pandemic, and companies may take further actions that alter their normal business operations. We will continue to actively monitor the situation and may take further actions that could materially alter our business operations as may be required or recommended by federal, provincial, state or local authorities, or that we determine are in the best interests of our employees, customers, shareholders, partners, suppliers, and other stakeholders.

Additional information concerning the impact COVID-19 may have to our future business and results of operations is provided in Part II, Item 1A. Risk Factors.

Trade Group

The Trade Group’s results in the first quarter reflect lower income as the Group recorded a significant loss on its corn position during the quarter as basis depreciated due to the sharp reduction in ethanol demand along with significant addition to credit reserves for customers in the ethanol market. The food and specialty ingredients businesses enjoyed a strong quarter, more than doubling last year's first quarter results partially offsetting the loss from corn basis depreciation and credit reserves.

Agricultural inventories on hand at March 31, 2020 were 128.8 million bushels, of which 3.9 million bushels were stored for others. These amounts compare to 136.8 million bushels on hand at March 31, 2019, of which 1.9 million bushels were stored for others. Total Trade storage capacity, including temporary pile storage, was approximately 205 million bushels at March 31, 2020 compared to 218 million bushels at March 31, 2019.

The group expects continued pressure on the profitability of its Eastern assets until the 2020 corn crop is harvested. However, the group believes an expected large corn crop in 2020 should help create increased space income beginning later this year and into 2021.

Ethanol Group

The Ethanol Group's first quarter results were significantly impacted by the COVID-19 pandemic as the lack of demand created a surplus of supply of both oil and ethanol driving margins negative during the quarter. The Ethanol Group expects these headwinds to continue as long as the lack of demand from COVID-19 continues.

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Ethanol and related co-products volumes for the three months ended March 31, 2020 and 2019 were as follows:

	Three months ended March 31,
(in thousands)	2020	2019
Ethanol (gallons shipped)	147,345	131,028
E-85 (gallons shipped)	9,093	8,932
Corn Oil (pounds shipped)	29,294	4,932
DDG (tons shipped) *	536	36

* DDG tons shipped converts wet tons to a dry ton equivalent amount

The above table shows only shipped volumes that flow through the Consolidated Financial Statements of the Company. As the Company merged its former unconsolidated LLCs into the consolidated TAMH entity in the fourth quarter of 2019, these consolidated volumes are now included in the 2020 amounts above. Total ethanol, DDG, and corn oil production by the unconsolidated LLCs for the first quarter of 2019 is actually higher than disclosed above. However, the portion of this volume that was sold from the unconsolidated LLCs directly to their customers for the first quarter of 2019 is excluded here.

Plant Nutrient Group

The Plant Nutrient Group's first quarter results were an improvement from the prior period, primarily as a result of the Engineered Granules business, which was driven by lower of cost of sales for its cob-based products. The Ag Supply Chain and Specialty Liquids businesses were comparable to the prior year. While volumes were up, due to product mix, overall margin per ton was lower overall for the full quarter, but improved planting began in the second half of March.

Storage capacity at our wholesale nutrient and farm center facilities, including leased storage, was approximately 486 thousand tons for dry nutrients and approximately 515 thousand tons for liquid nutrients at March 31, 2020 and March 31, 2019, respectively.

As of January 1, 2020, the group reorganized into three divisions: Ag Supply Chain, which includes wholesale distribution centers and retail farm centers; Specialty Liquids, which includes manufactured liquid products intended for agricultural and industrial uses; and Engineered Granules, which includes granular products for turf and agricultural uses, contract manufacturing and cob products. Prior period amounts below were recast to reflect this change.

Tons of product sold for the three months ended March 31, 2020 and 2019 were as follows:

	Three months ended March 31,
(in thousands)	2020	2019
Ag Supply Chain	211	170
Specialty Liquids	73	59
Engineered Granules	121	130
Total tons	405	359

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. Specialty Liquid locations produce and sell a variety of low-salt liquid starter fertilizers, micronutrients for agricultural use, and specialty products for use in various industrial processes. Engineered Granules facilities primarily manufacture granulated dry products for use in specialty turf and agricultural applications and a variety of corncob-based products

The group's near-term outlook is positive, as weather has been favorable for planting and a large corn crop is anticipated. However, a significant decrease in corn prices may cause some planting to shift from corn to beans and may lessen growers' and other customers' ability to buy the group's products.

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Rail Group

The Rail Group results declined mainly due to fewer car sales than the prior year. Leasing income slightly decreased from the prior year as the group faced headwinds in the sand and ethanol markets as well as lower lease renewal rates. Average utilization rates decreased from 95.7 percent in the first quarter of 2019 to 89.0 percent in the first quarter of 2020 as the group had fewer cars on lease from the sand and ethanol market headwinds. Rail Group assets under management (owned, leased or managed for financial institutions in non-recourse arrangements) at March 31, 2020 were 24,416 compared to 23,550 at March 31, 2019.

The group expects continued pressure on utilization and lease rates, as the COVID pandemic has driven railcar loadings 20 percent lower year over year for several weeks running. This condition will also likely decrease demand for contract railcar repairs.

Other

Our “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, including a portion of our ERP project, and other elimination and consolidation adjustments.

Operating Results

The following discussion focuses on the operating results as shown in the Condensed Consolidated Statements of Operations and includes a separate discussion by segment. Additional segment information is included herein in Note 12, Segment Information.

Comparison of the three months ended March 31, 2020 with the three months ended March 31, 2019 including a reconciliation of GAAP to non-GAAP measures:

	Three months ended March 31, 2020
(in thousands)	Trade			Ethanol			Plant Nutrient			Rail		Other			Total
Sales and merchandising revenues	$	1,378,040		$	313,039		$	124,913		$	37,113	$	—		$	1,853,105
Cost of sales and merchandising revenues	1,315,574			342,438			104,549			27,414		—			1,789,975
Gross profit	62,466			(29,399		)	20,364			9,699		—			63,130
Operating, administrative and general expenses	68,155			6,115			19,741			5,259		5,790			105,060
Interest expense (income), net	7,188			2,357			1,785			4,483		(226		)	15,587
Equity in earnings (losses) of affiliates, net	129			—			—			—		—			129
Other income (expense), net	2,765			446			(30		)	1,050		582			4,813
Income (loss) before income taxes	(9,983		)	(37,425		)	(1,192		)	1,007		(4,982		)	(52,575		)
Income (loss) before income taxes attributable to the noncontrolling interests	—			(13,449		)	—			—		—			(13,449		)
Non-GAAP Income (loss) before income taxes, net of noncontrolling interests attributable to The Andersons, Inc.	$	(9,983	)	$	(23,976	)	$	(1,192	)	$	1,007	$	(4,982	)	$	(39,126	)

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	Three months ended March 31, 2019
(in thousands)	Trade			Ethanol			Plant Nutrient			Rail		Other			Total
Sales and merchandising revenues	$	1,537,686		$	269,166		$	128,525		$	41,415	$	—		$	1,976,792
Cost of sales and merchandising revenues	1,470,289			263,766			107,591			25,482		—			1,867,128
Gross profit	67,397			5,400			20,934			15,933		—			109,664
Operating, administrative and general expenses	71,375			4,990			23,169			8,151		5,664			113,349
Interest expense (income), net	10,804			(712		)	2,261			3,679		(122		)	15,910
Equity in earnings (losses) of affiliates, net	(131		)	1,650			—			—		—			1,519
Other income (expense), net	(2,990		)	84			567			209		616			(1,514		)
Income (loss) before income taxes	(17,903		)	2,856			(3,929		)	4,312		(4,926		)	(19,590		)
Income (loss) before income taxes attributable to the noncontrolling interests	—			(155		)	—			—		—			(155		)
Non-GAAP Income (loss) before income taxes, net of noncontrolling interests attributable to The Andersons, Inc.	$	(17,903	)	$	3,011		$	(3,929	)	$	4,312	$	(4,926	)	$	(19,435	)

Trade Group

Operating results for the Trade Group increased by $7.9 million compared to the results of the same period last year, however prior year results included $11.6 million of transaction-related expenses. Sales and merchandising revenues decreased by $159.6 million and cost of sales and merchandising revenues decreased $154.7 million for an unfavorable net gross profit impact of $4.9 million. This decrease was primarily driven by the depreciation of corn basis and the decreased oil demand creating headwinds in the Company's frac sand operations.

Operating, administrative and general expenses decreased by $3.2 million. The decrease from the prior year is primarily related to transaction expenses that did not recur in 2020. This decrease was partially offset by approximately $3.4 million of additional bad debt reserves for customers that were adversely impacted by the COVID-19 pandemic.

Interest expense decreased $3.6 million due to the Company paying down debt and lower group borrowings on the Company's short-term line of credit compared to the prior year. Prior year results also include a $0.6 million write-off of deferred financing fees as part of its new credit facility.

Other income increased by $5.8 million as there were approximately $2.0 million worth of insurance settlements in the current year along with an initial remeasurement loss of $3.5 million on the Company's pre-existing equity method investment in LTG that didn't recur in the current year.

Ethanol Group

Operating results for the Ethanol Group declined $27.0 million from the same period last year. Sales and merchandising revenues increased $43.9 million and cost of sales and merchandising revenues increased $78.7 million compared to 2019 results, primarily attributable to the TAMH merger. Gross profit decreased by $34.8 million compared to 2019 results from the fallout of the COVID-19 pandemic leading to an over saturation of the supply of oil and a negative margin environment for the ethanol industry.

Operating, administrative and general expenses increased $1.1 million primarily due to an increase in labor and benefits, most of which was from the TAMH merger.

Interest expense increased $3.1 million due to the inclusion of interest expense related to the consolidation of TAMH and due to ELEMENT's ability to capitalize interest related to the construction of the ELEMENT facility in the prior year.

Equity in earnings of affiliates decreased $1.7 million as a result of the former unconsolidated ethanol LLCs being merged into the consolidated entity of TAMH.

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Plant Nutrient Group

Operating results for the Plant Nutrient Group increased by $2.7 million compared to the same period in the prior year. Sales and merchandising revenues decreased $3.6 million and cost of sales and merchandising revenues decreased by $3.0 million resulting in decreased gross profit of $0.6. This was driven by weaker margins in Ag Supply Chain sales when compared to the favorable positions the Company had in the same period of the prior year.

Operating, administrative and general expenses decreased $3.4 million due to more efficient production compared to the prior year.

Interest expense decreased $0.5 million from lower interest rates compared to the prior year.

Rail Group

Operating results declined $3.3 million from the same period last year while sales and merchandising revenues decreased $4.3 million. This decrease was mainly driven by a $3.7 million decrease in leasing revenues as a result of lower cars on lease and lower average lease rates from the prior year. Cost of sales and merchandising increased $1.9 million compared to the prior year due to higher storage costs on more idle cars and higher maintenance and depreciation expenses from the larger fleet from the prior year. As a result, gross profit decreased $6.2 million compared to the period year.

Operating, administrative and general expenses decreased $2.9 million driven by more efficient labor costs within the repair business.

Interest expense increased $0.8 million due to higher debt balances.

Income Taxes

For the three months ended March 31, 2020, the Company recorded an income tax benefit of $1.5 million at an effective rate of 2.8%. For the three months ended March 31, 2019, the Company recorded an income tax benefit of $5.4 million at an effective tax rate of 27.8%. The decrease in effective tax rate for the three months ended March 31, 2020 as compared to the same period last year primarily attributed to nondeductible losses related to our noncontrolling interests within the Ethanol group. These losses were offset by NOL carryback tax savings opportunities as provided by the CARES act.

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Liquidity and Capital Resources

Working Capital

At March 31, 2020, the Company had working capital of $436.4 million. The following table presents changes in the components of current assets and current liabilities:

(in thousands)	March 31, 2020		March 31, 2019		Variance
Current Assets:
Cash, cash equivalents and restricted cash	$	19,693	$	29,991	$	(10,298	)
Accounts receivable, net	539,671		611,290		(71,619		)
Inventories	1,028,076		1,026,465		1,611
Commodity derivative assets – current	149,070		158,277		(9,207		)
Other current assets	85,372		60,586		24,786
Total current assets	$	1,821,882	$	1,886,609	$	(64,727	)
Current Liabilities:
Short-term debt	392,450		434,304		(41,854		)
Trade and other payables	553,416		590,258		(36,842		)
Customer prepayments and deferred revenue	121,148		148,345		(27,197		)
Commodity derivative liabilities – current	90,491		66,623		23,868
Current maturities of long-term debt	80,758		55,160		25,598
Accrued expenses and other current liabilities	147,225		151,648		(4,423		)
Total current liabilities	$	1,385,488	$	1,446,338	$	(60,850	)
Working Capital	$	436,394	$	440,271	$	(3,877	)

Sources and Uses of Cash

	Three Months Ended
(in thousands)	March 31, 2020			March 31, 2019
Net cash used in operating activities	$	(228,430	)	$	(122,045	)
Net cash used in investing activities	(30,416		)	(205,836		)
Net cash provided by financing activities	223,577			336,050

Operating Activities

Our operating activities used cash of $228.4 million and $122.0 million in the first three months of 2020 and 2019, respectively. The increase in cash used was primarily due to a result of net losses incurred as well as the seasonality in the use of cash. Cash spend is typically high in the first quarter as the Company prepares for the spring planting season.

Investing Activities

Investing activities used cash of $30.4 million through the first three months of 2020 compared to cash used of $205.8 million in the prior year. The decrease from the prior year was a result of the acquisition of LTG and decreased capital spending.

In 2020, we expect to spend up to a total of approximately $31.0 million for the purchase of railcars and related leases and capitalized modifications of railcars. Total capital spending on property, plant and equipment in our base business excluding rail leasing activity, but inclusive of information technology spending is expected to be approximately $87.0 million.

Financing Activities

Financing activities provided cash of $223.6 million and $336.1 million for the three months ended March 31, 2020 and 2019, respectively. This decrease from the prior year was largely due to a decrease in proceeds as new debt was issued in the prior year to finance the LTG acquisition. This decrease in long term debt proceeds was partially offset by an increase in short-term borrowing used to finance working capital.

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We are party to borrowing arrangements with a syndicate of banks that provide a total of $1,684.0 million in borrowings. Of the total capacity, $491.0 million is non-recourse to the Company. As of March 31, 2020, the Company had $1,006.4 million available for borrowing with $145.4 million of that total being non-recourse to the Company.

We paid $5.7 million in dividends in the first three months of 2020 compared to $5.5 million in the prior year. The Company paid $0.175 per common share for the dividends paid in January of 2020 and $0.17 per common share for the dividends paid in January of 2019. On February 21, 2020 we declared a cash dividend of $0.175 per common share payable on April 22, 2020 to shareholders of record on April 1, 2020.

Certain of our long-term borrowings include covenants that, among other things, impose minimum levels of equity and limitations on additional debt. We are in compliance with all such covenants as of March 31, 2020. In addition, certain of our long-term borrowings are collateralized by first mortgages on various facilities or are collateralized by railcar assets. Our non-recourse long-term debt is collateralized by ethanol plant assets and railcar assets.

Because we are a significant borrower 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. However, much of this risk is mitigated by hedging instruments that are in place. In addition, periods of high grain prices and/or unfavorable market conditions could require us to make additional margin deposits on our exchange traded futures contracts. Conversely, in periods of declining prices, we could receive a return of cash.

While the effects of the coronavirus pandemic are expected to have a negative impact on operating cash flows, we believe our sources of liquidity will be adequate to fund our operations, capital expenditures and service our indebtedness.

At March 31, 2020, we had standby letters of credit outstanding of $76.3 million.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

For further information, refer to our Annual Report on Form 10-K for the year ended December 31, 2019. There were no material changes in market risk, specifically commodity and interest rate risk during the three months ended March 31, 2020.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Based on an evaluation under the supervision and with the participation of the Company’s management, the Company’s principal executive officer and principal financial officer have concluded that the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act were effective as of March 31, 2020 to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting during the first quarter of 2020, which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. As a result of the COVID-19 pandemic, the majority of our workforce began working remotely in March 2020. These changes to the working environment did not have a material effect on our internal controls over financial reporting during the most recent quarter.

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Part II. Other Information

Item 1. Legal Proceedings

The Company is subject to legal proceedings and claims that have not been fully resolved and that have arisen in the ordinary course of business. Except as described in Part I, Item 1 of this Form 10-Q in the Notes to Condensed Consolidated Financial Statements in Note 13, “Commitments and Contingencies,” in the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss greater than a recorded accrual, concerning loss contingencies for asserted legal and other claims.

The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts above management’s expectations, the Company’s financial condition and operating results for that reporting period could be materially adversely affected. The Company settled certain matters during the first quarter of 2020 that did not individually or in the aggregate have a material impact on the Company’s financial condition or operating results.

Item 1A. Risk Factors

The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those described in Part I, Item 1A of the 2019 Form 10-K under the heading “Risk Factors,” any one or more of which could, directly or indirectly, cause the Company’s actual financial condition and operating results to vary materially from past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition, operating results and stock price. There have been no material changes to the Company’s risk factors since the 2019 Form 10-K with the exception of those disclosed below.

The COVID-19 pandemic could negatively affect the Company's business and operating results

The future impacts of the global emergence of the novel strain of Coronavirus and the disease it causes on the Company's business or operating and financial results are unpredictable and cannot be identified with certainty at this time. The widespread health crisis has adversely affected the global economy and resulted in a widespread economic downturn which could adversely impact demand for our services. Such interruptions could include fluctuations to commodity prices, disruptions or restrictions on the ability to transport freight in the ordinary course, temporary closures of facilities and ports, or the facilities and ports of our customers, decreased demand for our products, and/or changes to export/import restrictions. The pandemic caused by COVID-19 may impact the seasonal trends that typically characterize our revenues and operating income. There is no assurance that the outbreak will not have a material adverse impact on our business or results of operations. Further, our operations could be negatively affected if a significant number of our employees are unable to perform their normal duties because of contracting COVID-19 or based on further direction from governments, public health authorities or regulatory agencies. The extent of the impact, if any, will depend on developments beyond our control, including actions taken by governments, financial institutions, monetary policy authorities, and public health authorities to contain and respond to public health concerns and general economic conditions as a result of the pandemic.

We will continue to actively monitor the situation and may take further actions that alter our business operations as may be required or recommended by federal, provincial, state or local authorities, or that we determine are in the best interests of our employees, customers, partners, suppliers, shareholders and other stakeholders. We cannot be certain of potential effects any such alterations or modifications may have on our business or operating and financial results for the fiscal year ending December 31, 2020.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

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^(2)^	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
January 2020	64,420	$	25.28	—	—
February 2020	2,101	22.79		—	—
March 2020	1,913	18.85		—	—
Total	68,434	$	25.02	—	—

(1) During the three months ended March 31, 2020, the company acquired shares of common stock held by employees who tendered owned shares to satisfy tax withholding obligations.

(2) No shares were purchased as part of publicly announced plans or programs.

Item 4. Mine Safety Disclosure

We are committed to protecting the occupational health and well-being of each of our employees. Safety is one of our core values and we strive to ensure that safety is the first priority for all employees. Our internal objective is to achieve zero injuries and incidents across the Company by focusing on proactively identifying needed prevention activities, establishing standards and evaluating performance to mitigate any potential loss to people, equipment, production and the environment. We have implemented employee training that is geared toward maintaining a high level of awareness and knowledge of safety and health issues in the work environment. We believe that through these policies we have developed an effective safety management system.

Under the Dodd-Frank Act, each operator of a coal or other mine is required to include certain mine safety results within its periodic reports filed with the SEC. As required by the reporting requirements included in §1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K, the required mine safety results regarding certain mining safety and health matters for each of our mine locations that are covered under the scope of the Dodd-Frank Act are included in Exhibit 95.1 of Item 6. Exhibits of this Quarterly Report on Form 10-Q.

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Item 6. Exhibits

Exhibit Number	Description
10.1*	Form of Restricted Share Award
10.2*	Form of Performance Share Unit Agreement - Total Shareholder Return
31.1*	Certification of the Chief Executive Officer under Rule 13(a)-14(a)/15d-14(a)
31.2*	Certification of the Chief Financial Officer under Rule 13(a)-14(a)/15d-14(a)
32.1**	Certifications Pursuant to 18 U.S.C. Section 1350
95.1*	Mine Safety Disclosure
101**	Inline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q.
104**	Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.
* Filed herewith
** Furnished herewith

Items 3 and 5 are not applicable and have been omitted

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	THE ANDERSONS, INC.<br><br>(Registrant)
Date: May 8, 2020	By /s/ Patrick E. Bowe
	Patrick E. Bowe
	Chief Executive Officer (Principal Executive Officer)
Date: May 8, 2020	By /s/ Brian A. Valentine
	Brian A. Valentine
	Executive Vice President and Chief Financial Officer (Principal Financial Officer)

		Exhibit

Exhibit 10.1

THE ANDERSONS, INC.

2019 LONG-TERM INCENTIVE COMPENSATION PLAN

RESTRICTED STOCK AWARD GRANT NOTICE

Upon execution by the individual listed below (“Participant”) of this Restricted Stock Award Grant Notice (the “Grant Notice”), The Andersons, Inc., a Delaware corporation, (the “Company”), hereby grants to Participant the number of Shares set forth below (the “Restricted Stock”) pursuant to the Company’s 2019 Long-Term Incentive Compensation Plan (the “Plan”). Participant acknowledges and agrees that the Restricted Stock is subject to the Terms and Conditions attached hereto as Exhibit A (the “Terms and Conditions”) and the provisions of the Plan. Any terms not defined in this Grant Notice shall have the meanings ascribed in the Plan and the Terms and Conditions.

Participant:	#ParticipantName#
Grant Date:	#GrantDate#
Total Number of Shares of Restricted Stock:	#QuantityGranted# Shares
Purchase Price:	$0.00
Vesting Schedule:	Subject to the Terms and Conditions, one third of the Shares shall vest over the next three years per the vesting schedule below, provided Participant has not had a Termination prior to such date. #VestingDateandQuantity#

By his or her signature and the Company’s signature below, Participant agrees to be bound by the provisions of the Plan, the Terms and Conditions, and this Grant Notice. Participant has reviewed the Plan, the Terms and Conditions and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of the Plan, the Terms and Conditions, and this Grant Notice. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan, the Terms and Conditions, and this Grant Notice. Participant hereby acknowledges receipt of a copy of the Plan and the Terms and Conditions and that Participant has read the Plan, the Terms and Conditions and this Grant Notice carefully and fully understands their contents.

The Andersons, Inc. Holder:		PARTICIPANT:
By:		Name:	#Signature#
Name:	Valerie M. Blanchett	Date:	#AcceptanceDate#
Title:	Chief Human Resources Officer
Address:	1947 Briarfield Blvd.
	Maumee, Ohio 43537

EXHIBIT A

TO RESTRICTED STOCK AWARD GRANT NOTICE

TERMS AND CONDITIONS TO THE RESTRICTED STOCK AWARD

PURSUANT TO THE

THE ANDERSONS, INC. 2019 LONG-TERM INCENTIVE COMPENSATION PLAN

Pursuant to The Andersons, Inc. 2019 Long-Term Incentive Compensation Plan, as amended from time to time (the “Plan”) and the Restricted Stock Award Grant Notice (the “Grant Notice”), “Participant,” as identified in the Grant Notice, has been granted that number of Shares set forth in the Grant Notice (the “Restricted Stock”). By execution of the Grant Notice, Participant has acknowledged and agreed that the Restricted Stock is subject to the terms and conditions set forth herein (the “Terms”).

WHEREAS, it has been determined that it would be in the best interests of the Company to grant the Restricted Stock to Participant.

NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth and for other good and valuable consideration, the parties hereto hereby mutually covenant and agree as follows:

1.Incorporation By Reference; Plan Document Receipt

The Terms are subject in all respects to the provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time unless such amendments are expressly intended not to apply to the Terms provided herein), all of which provisions are made a part of and incorporated herein as if they were each expressly set forth herein. Any capitalized term not defined herein shall have the same meaning as is ascribed thereto in the Plan. In the event of any conflict between these Terms, the Plan or the Grant Notice, the Plan shall control.

2.Grant of Restricted Stock Award

The Company grants to Participant, as of the Grant Date specified in the Grant Notice, the number of shares of Restricted Stock specified in the Grant Notice. Except as otherwise provided by the Plan, Participant agrees and understands that nothing contained in these Terms provides, or is intended to provide, Participant with any protection against potential future dilution of Participant’s interest in the Company for any reason, and no adjustments shall be made for dividends in cash or other property, distributions or other rights in respect of any such shares, except as otherwise specifically provided for in the Plan or these Terms. Subject to Section 4 hereof, Participant shall not have the rights of a stockholder in respect of the shares underlying this Award until unrestricted shares are delivered to Participant in accordance with Section 4 hereof.

3.Vesting

(a)General. Subject to Article XI of the Plan, the Restricted Stock shall become unrestricted and vested as described in the Grant Notice. There shall be no proportionate or partial vesting during the period prior to the vesting date and all vesting shall occur only on the vesting date set forth in the Grant Notice, subject to Participant’s continued service on the Board on the applicable vesting date.

(b)Certain Terminations Prior to Vesting

. Unless otherwise provided in the Grant Notice, Participant’s right to vest in any of the Restricted Stock shall terminate in full and be immediately forfeited upon Participant’s Termination for any reason.

4.Dividends and Other Distributions; Voting

If any dividends or other distributions are paid with respect to the Common Stock of the Company while Participant holds the Restricted Stock and prior to the time that the Restricted Stock becomes vested in accordance with the Grant Notice, Participant shall be entitled to receive such dividends and other distributions attributable to the Restricted Stock in the form of additional shares of Common Stock; provided that, any such dividends or other distributions will be subject to the same vesting requirements as the underlying Restricted Stock. Additional shares of Common Stock attributable to dividends or other distributions will be issued to Participant as soon as administratively feasible following the time the Restricted Stock becomes vested in accordance with the Grant Notice, but in no event later than March 15 of the calendar year following the calendar year in which the Restricted Stock became vested. The amount of such additional shares of Common Stock will be determined by multiplying (i) the total amount of dividends actually paid on a share of Common Stock prior to the date that the Restricted Stock become vested in accordance with Grant Notice, by (ii) the number of shares of Restricted Stock that become vested in accordance with the terms of the Grant Notice, and then dividing such total by the Fair Market Value of the Common Stock on the last trading day prior to the applicable vesting date, as determined by the Committee. Participant may exercise full voting rights with respect to the Restricted Stock granted under the Grant Notice.

5.Non-Transferability

Any attempt to sell, exchange, transfer, assign, pledge, encumber or otherwise dispose of or hypothecate in any way any of the Restricted Stock, or the levy of any execution, attachment or similar legal process upon the Restricted Stock prior to the vesting date or contrary to the terms and provisions of the Plan, shall be null and void and without legal force or effect.

6.Governing Law

All questions concerning the construction, validity and interpretation of these Terms and the Grant Notice shall be governed by, and construed in accordance with, the laws of the State of Ohio, without regard to the choice of law principles thereof.

7.Section 83(b)

Participant may make a Section 83(b) election within 30 days after the issuance of the Restricted Stock to include in gross income for federal income tax purposes in the year of issuance the Fair Market Value of such shares of Restricted Stock. Participant shall promptly notify the Company if Participant makes such a Section 83(b) election.

8.Limited Power of Attorney to Transfer Unvested Shares Upon Termination.

In order to facilitate the transfer to the Company of any Shares in which Participant forfeits vesting rights pursuant to these Terms, Participant agrees to hereby appoint the General Counsel of the Company as Participant’s attorney in fact with full power of substitution, to act for Participant in Participant’s name and place to sell, assign, and transfer Shares of the Company registered in Participant’s name on the books of the Company as represented by the Company’s Registrar and Transfer Agent, in book entry form, and to receive the consideration for the Shares. Such power of attorney is irrevocable and coupled with an interest. By accepting these Terms, Participant hereby ratifies all acts which Participant’s attorney in fact or the General Counsel of the Company substitute lawfully performs pursuant to the power conferred by this instrument.

9.Entire Agreement; Amendment

These Terms, together with the Grant Notice and the Plan, contains the entire agreement between the parties hereto with respect to the subject matter contained herein, and supersedes all prior agreements or prior understandings, whether written or oral, between the parties relating to such subject matter. The Committee shall have the right, in its sole discretion, to modify or amend these Terms from time to time in accordance with and as provided in the Plan. These Terms may also be modified or amended by a writing signed by both the Company and Participant. The Company shall give written notice to Participant of any such modification or amendment of these Terms as soon as practicable after the adoption thereof.

10.Notices

Any notice hereunder by Participant shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof by the General Counsel, the VP of Human Resources, or any other administrative agent designated by the Committee. Any notice hereunder by the Company shall be given to Participant in writing and such notice shall be deemed duly given only upon receipt thereof at such address as Participant may have on file with the Company.

11.Acceptance

As required by Section 8.2 of the Plan, Participant may forfeit the Restricted Stock if Participant does not execute the Grant Notice (which, for the avoidance of doubt, accepts and acknowledges these Terms) within a period of 30 days from the date that Participant receives the Grant Notice (or such earlier period as the Committee shall provide).

12.Transfer of Personal Data

Participant authorizes, agrees and unambiguously consents to the transmission by the Company (or any Subsidiary) of any personal data information related to the Restricted Stock awarded under the Grant Notice for legitimate business purposes. This authorization and consent is freely given by Participant.

13.Compliance with Laws

The issuance of the Restricted Stock or unrestricted shares pursuant to the Grant Notice shall be subject to, and shall comply with, any applicable requirements of any foreign and U.S. federal and state securities laws, rules and regulations (including, without limitation, the provisions of the Securities Act, the Exchange Act and in each case any respective rules and regulations promulgated thereunder) and any other law, rule, regulation or exchange requirement applicable thereto. The Company shall not be obligated to issue the Restricted Stock or any of the shares pursuant to the Grant Notice and these Terms if any such issuance would violate any such requirements. As a condition to settlement of the Restricted Stock, the Company may require Participant to satisfy any qualifications that may be necessary or appropriate to evidence compliance with any applicable law or regulation.

14.Section 409A

Notwithstanding anything contained herein, in the Grant Notice or in the Plan to the contrary, the shares of Restricted Stock are intended to be exempt from the applicable requirements of Section 409A of the Code and shall be limited, construed and interpreted in accordance with such intent.

15.Binding Agreement; Assignment

These Terms shall inure to the benefit of, be binding upon, and be enforceable by the Company and its successors and assigns. Participant shall not assign (except in accordance with the Plan) any part of the Grant Notice or these Terms without the prior express written consent of the Company.

16.Headings

The titles and headings of the various sections of these Terms have been inserted for convenience of reference only and shall not be deemed to be a part of these Terms or the Grant Notice.

17.Counterparts

The Grant Notice and these Terms may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument.

18.Further Assurances

Each party hereto shall do and perform (or shall cause to be done and performed) all such further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as either party hereto reasonably may request in order to carry out the intent and accomplish the purposes of the Grant Notice, these Terms and the Plan and the consummation of the transactions contemplated thereunder.

19.Severability

The invalidity or unenforceability of any provisions of these Terms in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of the Terms in such jurisdiction or the validity, legality or enforceability of any provision of these Terms in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

20.Acquired Rights

Participant acknowledges and agrees that: (a) the Company may terminate or amend the Plan at any time subject to the limitations contained in the Plan or these Terms; (b) the grant of Restricted Stock made under the Grant Notice is completely independent of any other award or grant and is made at the sole discretion of the Company; and (c) no past grants or awards (including, without limitation, the Restricted Stock granted under the Grant Notice) give Participant any right to any grants or awards in the future whatsoever.

		Exhibit

Exhibit 10.2

THE ANDERSONS, INC.

2019 LONG-TERM INCENTIVE COMPENSATION PLAN

TSR PERFORMANCE SHARE UNIT GRANT NOTICE

Upon execution by the individual listed below (“Participant”) of this TSR Performance Share Unit Grant Notice (the “Grant Notice”), The Andersons, Inc., a Delaware corporation, (the “Company”), hereby grants to Participant the opportunity to earn the number of Shares set forth below (the “Target PSUs”), subject to increases and decreases as set forth below (the final earned amount of Shares being the “Vested PSUs”), pursuant to the Company’s 2019 Long-Term Incentive Compensation Plan (the “Plan”). Participant acknowledges and agrees that the Target PSUs are subject to the Terms and Conditions attached hereto as Exhibit A (the “Terms and Conditions”) and the provisions of the Plan. Any terms not defined in this Grant Notice shall have the meanings ascribed in the Plan and the Terms and Conditions.

Participant:	#ParticipantName#
Grant Date:	March 2, 2020
Total Number of Shares of Target PSUs:	#QuantityGranted# Shares, subject to increases and decreases for performance pursuant to the Vesting Schedule set forth below
Performance Period:	The Performance Period for the PSUs granted hereunder shall be the three-year period beginning January 1, 2020 and ending December 31, 2022.
Vesting Schedule:	The Target PSUs shall vest following the conclusion of the Performance Period based on the Company’s annualized total shareholder return (“TSR” or, the “Performance Goal”), as further defined below, relative to the annualized TSR of the Russell 3000 Index, (the “Comparator Group”) computed during the Performance Period. The number of PSUs that become vested based upon the level of satisfaction of the Performance Goal are referred to herein as “Vested PSUs”<br><br><br><br>For purposes of this Agreement, “TSR” for the Company shall mean (i) the sum of (x) the average stock price at the end of the Performance Period plus (y) the value of all dividends paid during the Performance Period if those dividends had been reinvested in additional shares of stock on the date of payment, divided by (ii) the average stock price at the beginning of the Performance Period, annualized as a compound annual rate of return. “TSR” for the Comparator Group shall mean the average index price at the end of the Performance Period divided by the average index price at the beginning of the Performance Period, expressed as a compound annual percentage rate of return. When computing TSR for the Company and the Comparator Group, the average stock or index price at the beginning of the Performance Period will be the average closing stock or index price over the trading days in the month immediately preceding the start of the Performance Period (January 1, 2020), and the average stock or index price at the end of the Performance Period will be the average closing stock or index price over the trading days in the last month of the Performance Period (December 31, 2022)<br><br><br><br>The Committee shall certify the level of TSR achievement following the end of the Performance Period and prior to settlement of the Vested PSUs. No PSUs will be considered Vested PSUs if the Company’s annualized TSR during the Performance Period is positive but more than twelve (12) percentage points below the Comparator Group’s annualized TSR during the Performance Period. If the Company’s annualized TSR is negative, no PSUs will be considered Vested PSUs if the Company’s annualized TSR during the Performance Period is twelve (12) or more percentage points below the Comparator Group’s annualized TSR during the Performance Period. Participant must remain continuously employed by the Company or any of its Subsidiaries through January 2 of the calendar year following the end of the Performance Period to be eligible to fully vest in and receive any payment of the Vested PSUs except as otherwise specifically provided for in the Plan, this grant Notice or the Terms and Conditions attached hereto. The Committee reserves the right to adjust the number of Vested PSUs to reflect extraordinary transactions or events which impact TSR as it determines in its sole discretion.

Vesting Chart	For purposes of this Grant Notice, the number of Vested PSUs, if any, for the Performance Period shall be determined in accordance with the chart below corresponding to the Company’s annualized TSR relative to the Comparator Group’s annualized TSR, (the “Vested PSU Payout Percent”):
Goal<br><br>Achievement	Company’s Annualized TSR Relative to Comparator Group’s Annualized TSR	Vested PSU Payout Percent
		% of Target PSUs if Company TSR is Positive	% of Target PSUs if Company TSR is Negative
Maximum	18 percentage points or more above Target	200%	100%
Above Target	For every +1 percentage points Company TSR is above Target	100% plus 5.56% of target	100%
Target	Comparator Group’s Annualized TSR	100%	100%
Below Target	For every -1 percentage points Company TSR is below Comparator Group	100% less 5% of target	100% less 5% of target
Threshold	12 percentage points below<br>Comparator Group	40%	40%
Below Threshold	More than -12 percentage points below Comparator Group	—%	—%

The Andersons, Inc. Holder:		PARTICIPANT:
By:		Name:	#Signature#
Name:	Valerie M. Blanchett	Date:	#AcceptanceDate#
Title:	Chief Human Resources Officer
Address:	1947 Briarfield Blvd.<br><br>Maumee, OH 43537

EXHIBIT A

TO TSR Performance Share Unit Grant Notice

TERMS AND CONDITIONS TO THE TSR PERFORMANCE SHARE UNIT GRANT NOTICE

PURSUANT TO THE

THE ANDERSONS, INC. 2019 LONG-TERM INCENTIVE COMPENSATION PLAN

Pursuant to The Andersons, Inc. 2019 Long-Term Incentive Compensation Plan, as amended from time to time (the “Plan”) and the TSR Performance Share Unit Grant Notice (the “Grant Notice”), “Participant,” as identified in the Grant Notice, has been granted that number of PSUs set forth in the Grant Notice (the “PSUs”). By execution of the Grant Notice, Participant has acknowledged and agreed that the PSUs, and the number of Shares ultimately awarded thereto, are subject to the terms and conditions set forth herein (the “Terms”).

WHEREAS, it has been determined that it would be in the best interests of the Company to grant the PSUs to Participant.

1.Incorporation By Reference; Plan Document Receipt. The Terms are subject in all respects to the provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time unless such amendments are expressly intended not to apply to the Terms provided herein), all of which provisions are made a part of and incorporated herein as if they were each expressly set forth herein. Any capitalized term not defined herein shall have the same meaning as is ascribed thereto in the Plan. In the event of any conflict between these Terms, the Plan or the Grant Notice, the Plan shall control.

2.Grant of Performance Stock Units. The Company hereby grants to Participant, as of the Grant Date specified in the Grant Notice, the number of PSUs specified in the Grant Notice, with the actual number of shares of Common Stock to be issued pursuant to the Grant Notice contingent upon satisfaction of the vesting and performance conditions described in the Grant Notice, subject to Section 4. Except as otherwise provided by the Plan, Participant agrees and understands that nothing contained in these Terms provides, or is intended to provide, Participant with any protection against potential future dilution of Participant’s interest in the Company for any reason, and no adjustments shall be made for dividends in cash or other property, distributions or other rights in respect of the shares of Common Stock underlying the PSUs, except as otherwise specifically provided for in the Plan or these Terms.

3.Performance Goals and Vesting of PSUs. Subject to Article XI of the Plan, (i) the Performance Period and Vesting Schedule for the PSUs shall be set forth in the Grant Notice.

4.Certain Terminations Prior to Vesting. Participant’s right to vest in any of the PSUs shall terminate in full and be immediately forfeited upon Participant’s Termination for any reason; provided that, in the event of Participant’s Termination due to Participant’s death, Disability or Retirement (each, a “Special Termination”), Participant’s number of PSUs shall be adjusted by multiplying the number of Target PSUs by a fraction, the numerator of which is the number of months of service (rounded to the nearest whole month) from the first month of the performance period through the date of such Special Termination, and the denominator of which is the total number of months in the Performance Period. Such adjusted number of Target PSUs shall remain outstanding and eligible to become Vested PSUs subject to the level of satisfaction of the applicable Performance Goals, as determined in accordance with the Grant Notice.

5.Rights as a Stockholder. Participant shall have no rights as a stockholder (including having no right to vote or to receive dividends) with respect to the Common Stock subject to the PSUs prior to the date the Common Stock is delivered to Participant in accordance with Section 6 herein. Notwithstanding the foregoing, if any dividends are paid with respect to the Common Stock of the Company during the Performance Period, additional shares of Common Stock will be issued to Participant as soon as administratively feasible immediately following the time that the Vested PSUs are settled in Common Stock in accordance with these Terms. The amount of such additional shares of Common Stock will be determined by multiplying (a) the total amount of dividends actually paid on a share of Common Stock prior to the date that the Vested PSUs are settled in accordance with these Terms, by (b) the number of Vested PSUs, and then dividing such total by the Fair Market Value of the Common Stock on the last day of the Performance Period, as determined by the Committee.

6.Payment of Vested PSUs. Vested PSUs, rounded to the nearest whole share, shall be delivered to Participant in the form of an equal number of shares of Common Stock, and any additional shares deliverable pursuant to Section 5 hereof, rounded to the nearest whole unit, shall be delivered, in each case no later than March 15 of the calendar year following the calendar year in which the PSUs become Vested PSUs in accordance with the Grant Notice. PSUs that do not become Vested PSUs shall be immediately forfeited and Participant shall have no further rights thereto.

7.Change in Control Prior to Vesting. Participant’s right to vest in any PSUs following a Change in Control shall depend on (i) whether the PSUs are assumed, converted or replaced by the continuing entity, and (ii) the timing of the Change in Control within the Performance Period, in each case as follows:

(a)In the event the PSUs are not assumed, converted, or replaced by the continuing entity following the Change in Control (as determined by the Committee), the number of Target PSUs shall immediately become Vested PSUs.

(b)In the event that the PSUs are assumed, converted, or replaced by the continuing entity following the Change in Control (as determined by the Committee), the number of Target PSUs that become Vested PSUs shall be determined following the conclusion of the Performance Period in accordance with the level at which the Performance Goals are satisfied, determined in accordance with the Grant Notice, and subject to Participant’s continued employment through the last day of the Performance Period.

(c)Notwithstanding the foregoing, in the event of a Qualifying Termination (as defined below) of Participant that occurs within three (3) months prior to or twenty-four (24) months following the Change a Control and prior to the end of the Performance Period, Participant’s PSUs shall not expire immediately upon such Termination and instead the number of Target PSUs shall become Vested PSUs immediately upon the date of the Qualifying Termination (or, if later, the date of such Change in Control), as applicable, provided, however that Participant must execute and not revoke a general release of claims against the Company in a form reasonably satisfactory to the Committee within forty-five (45) days following such Qualifying Termination or, if later, by the date of the Change in Control. For the avoidance of doubt, in the event a Change in Control has not occurred prior to the Qualifying Termination and does not occur within three (3) months following a Qualifying Termination, any unvested PSUs outstanding at such time shall immediately expire. For purposes of this Section, “Qualifying Termination” means Participant’s Termination by the Company or a Subsidiary, other than for Cause and other than due to Participant’s explicit request, death or Disability.

8.Entire Agreement; Amendment. These Terms, together with the Grant Notice, the Plan and any severance or change in control agreement, contains the entire agreement between the parties hereto with respect to the subject matter contained herein, and supersedes all prior agreements or prior understandings, whether written or oral, between the parties relating to such subject matter. The Committee shall have the right, in its sole discretion, to modify or amend these Terms from time to time in accordance with and as provided in the Plan. These Terms may also be modified or amended by a writing signed by both the Company and Participant. The Company shall give written notice to Participant of any such modification or amendment of these Terms as soon as practicable after the adoption thereof.

9.Notices. Any notice hereunder by Participant shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof by the General Counsel, the VP of Human Resources, or any other administrative agent designated by the Committee. Any notice hereunder by the Company shall be given to Participant in writing and such notice shall be deemed duly given only upon receipt thereof at such address as Participant may have on file with the Company.

10.Acceptance. As required by Section 8.2 of the Plan, Participant may forfeit the PSUs if Participant does not execute the Grant Notice (which, for the avoidance of doubt, accepts and acknowledges these Terms) within a period of 90 days from the date that Participant receives the Grant Notice (or such earlier period as the Committee shall provide).

11.No Right to Service. Nothing in these Terms shall interfere with or limit in any way the right of the Company or its Subsidiaries to terminate Participant’s service at any time, for any reason and with or without Cause.

12.Transfer of Personal Data. Participant authorizes, agrees and unambiguously consents to the transmission by the Company (or any Subsidiary) of any personal data information related to the PSUs awarded under the Grant Notice for legitimate business purposes. This authorization and consent is freely given by Participant.

13.Compliance with Laws. The grant of PSUs and the issuance of shares of Common Stock pursuant to the Grant Notice shall be subject to, and shall comply with, any applicable requirements of any foreign and U.S. federal and state securities laws, rules and regulations (including, without limitation, the provisions of the Securities Act, the Exchange Act and in each case any respective rules and regulations promulgated thereunder) and any other law, rule regulation or exchange requirement applicable thereto. The Company shall not be obligated to issue the PSUs or any shares pursuant to the Grant Notice or these Terms if any such issuance would violate any such requirements. As a condition to the settlement of the PSUs, the Company may require Participant to satisfy any qualifications that may be necessary or appropriate to evidence compliance with any applicable law or regulation.

14.Section 409A. Notwithstanding anything contained herein, in the Grant Notice or in the Plan to the contrary, the PSUs are intended to be exempt from the applicable requirements of Section 409A of the Code and shall be limited, construed and interpreted in accordance with such intent.

15.Binding Agreement; Assignment. These Terms shall inure to the benefit of, be binding upon, and be enforceable by the Company and its successors and assigns. Participant shall not assign (except in accordance with the Plan) any part of the Grant Notice or these Terms without the prior express written consent of the Company.

16.Headings. The titles and headings of the various sections of these Terms have been inserted for convenience of reference only and shall not be deemed to be a part of these Terms or the Grant Notice.

17.Counterparts. The Grant Notice and these Terms may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument.

18.Further Assurances. Each party hereto shall do and perform (or shall cause to be done and performed) all such further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as either party hereto reasonably may request in order to carry out the intent and accomplish the purposes of the Grant Notice, these Terms and the Plan and the consummation of the transactions contemplated thereunder.

19.Severability. The invalidity or unenforceability of any provisions of these Terms in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of the Terms in such jurisdiction or the validity, legality or enforceability of any provision of these Terms in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

20.Acquired Rights. Participant acknowledges and agrees that: (a) the Company may terminate or amend the Plan at any time subject to the limitations contained in the Plan or these Terms; (b) the grant of PSUs made under the Grant Notice is completely independent of any other award or grant and is made at the sole discretion of the Company; and (c) no past grants or awards (including, without limitation, the PSUs granted under the Grant Notice) give Participant any right to any grants or awards in the future whatsoever.

		Exhibit

Exhibit 31.1

Certifications

I, Patrick E. Bowe, certify that:

| 1. | I have reviewed this report on Form 10-Q of The Andersons, Inc. | | --- | --- || 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | | --- | --- || 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | | --- | --- || 4. | The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | | --- | --- || a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared; | | --- | --- || b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | | --- | --- || c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | | --- | --- || d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | | --- | --- || 5. | The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): | | --- | --- || a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | | --- | --- || b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | | --- | --- |

May 8, 2020

/s/ Patrick E. Bowe
Patrick E. Bowe
Chief Executive Officer (Principal Executive Officer)

		Exhibit

Exhibit 31.2

Certifications

I, Brian A. Valentine, certify that:

May 8, 2020

/s/ Brian A. Valentine
Brian A. Valentine
Executive Vice President and Chief Financial Officer (Principle Financial Officer)

		Exhibit

Exhibit 32.1

The Andersons, Inc.

Certifications Pursuant to 18 U.S.C. Section 1350

In connection with the Quarterly Report of The Andersons, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to such officer’s knowledge:

(1)	The Report fully complies with the requirements of 13(a) or 15(d) of the Securities Exchange Act of 1934, and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
---	---

May 8, 2020

/s/ Patrick E. Bowe
Patrick E. Bowe
Chief Executive Officer (Principal Executive Officer)
/s/ Brian A. Valentine
Brian A. Valentine
Executive Vice President and Chief Financial Officer (Principle Financial Officer)

		Exhibit

Exhibit 95.1

Mine Safety Disclosure

Our mining operation(s) are subject to regulation by the Federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). We have disclosed below information regarding certain citations and orders issued by MSHA and related assessments and legal actions with respect to these mining operation(s). In evaluating the below information regarding mine safety and health, investors should take into account factors such as: (i) the number of citations and orders will vary depending on the size of a mine; (ii) the number of citations issued will vary from inspector to inspector and mine to mine; and (iii) citations and orders can be contested and appealed, and in that process, are often reduced in severity and amount, and are sometimes dismissed or vacated. The tables below include information regarding issued citations and/or orders which may or may not become final orders. The tables below do not include any orders or citations issued to independent contractors at our mines.

Under the Dodd-Frank Act, each operator of a coal or other mine is required to include certain mine safety results within its periodic reports filed with the SEC. As required by the reporting requirements included in §1503(a) of the Dodd-Frank Act, we present the following items regarding certain mining safety and health matters, for the period presented, for each of our mine locations that are covered under the scope of the Dodd-Frank Act:

(A)	Mine Act Section 104 Significant and Substantial (“S&S”) citations shown below are for alleged violations of mandatory health or safety standards that could significantly and substantially contribute to a mine health and safety hazard.
(B)	Mine Act Section 104(b) orders are for alleged failures to totally abate a citation within the time period specified in the citation.
---	---
(C)	Mine Act Section 104(d) citations and orders are for an alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with mandatory health or safety standards.
---	---
(D)	Mine Act Section 110(b)(2) violations are for an alleged “flagrant” failure (i.e., reckless or repeated) to make reasonable efforts to eliminate a known violation of a mandatory safety or health standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.
---	---
(E)	Mine Act Section 107(a) orders are for alleged conditions or practices which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated and result in orders of immediate withdrawal from the area of the mine affected by the condition.
---	---

(F) Amounts shown include assessments proposed by MSHA during the three months ended March 31, 2020 on all citations and orders, including those citations and orders that are not required to be included within the above chart.

(G)	Mine Act Section 104(e) written notices are for an alleged pattern of violations of mandatory health or safety standards that could significantly and substantially contribute to a mine safety or health hazard.

The following tables disclose the information listed above for the three months ended March 31, 2020:

	Three months ended March 31, 2020
	(A)	(B)	(C)	(D)	(E)	(F)
Mine Name/MSHA ID No.	Section 104 S&S<br><br>Citations	Section 104(b)<br><br>Orders	Section 104(d) Citations/Orders	Section 110(b)(2) Citations/Orders	Section 107(a)<br><br>Orders	Total Dollar Value of MSHA Assessments Proposed<br><br>(In thousands)
Industrial Sand Processing Plt-North Branch/21-02917	—	—	—	—	—	$—
Titan Lansing OKC Sand Plant/34-02189	—	—	—	—	—	$1.0

	Three months ended March 31, 2020
	(G)
Mine Name/MSHA ID No.	Received Notice of Pattern of Violations Under Section 104(e) (yes/no)	Total Number of Mining Related Fatalities	Legal Actions Pending as of Last Day of Period	Legal Actions Initiated During Period	Legal Actions Resolved During Period
Industrial Sand Processing Plt-North Branch/21-02917	No	—	—	—	—
Titan Lansing OKC Sand Plant/34-02189	No	—	—	—	—

During the three months ended March 31, 2020, there were no legal actions initiated, pending, or resolved before the Federal Mine Safety and Health Review Commission related to contests of citations and orders, contests of proposed penalties, complaints for compensation, complaints of discharge/discrimination/interference, applications for temporary relief, or appeals of judges’ rulings.