Andersons, Inc.ANDE
Andersons, Inc. Segments Disclosure
Segment Information
(a) Depreciation and amortization disclosed by reportable segment is included within both Cost of sales and merchandising revenues and Operating, administrative and general expenses within the Consolidated Statement of Operations.
Reportable segments are components of the Company for which discrete financial information is available and that are regularly evaluated by the Chief Operating Decision Maker (“CODM”). The Company has identified the Chief Executive Officer to be the Company's CODM as he has final authority over performance assessment and resource allocation decisions. The CODM regularly receives and uses discrete financial information for each reportable segment as well as select supplemental financial information for certain business units. The CODM uses this information to assess segment performance and allocate resources by comparing actual results to forecasted and historical information and discussing observations with the broader leadership team responsible for managing each segment. These reviews occur on a regular basis and include probing inquiries, analysis of both company-specific and market-based factors, and consideration of trends impacting each segment. The CODM evaluates performance and allocates resources to each reportable segment primarily based on the segment profit or loss, which represents each segment’s Income (loss) before income taxes.
The Company’s operations include two reportable business segments that are distinguished primarily on the basis of products and services. The Agribusiness segment includes commodity merchandising, the operation of terminal grain elevator facilities, and the manufacturing and distribution of plant nutrient products. The Renewables segment produces and sells ethanol and co-products, while also managing a merchandising portfolio that includes ethanol, ethanol co-products, and renewable feedstocks. Other includes corporate income and expenses, costs for shared support functions that support the operating segments, and various elimination and consolidation adjustments. Each segment is managed separately under the Company's organizational structure, reflecting differences in strategic objectives, operational processes, and management accountability.
Effective January 1, 2025, the Company realigned its organizational structure to better reflect updates in management reporting resulting in a change in reportable segments. As a result, the former Trade segment was combined with the former Nutrient & Industrial segment in the newly formed Agribusiness segment along with several smaller business lines being moved between the Agribusiness and Renewables segments. Management assessed the impact of the recast on the related reporting units and determined that a recast of goodwill balances between segments was not material. All prior period segment information has been recast to conform to the current year presentation.
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. The Company does not have any customers who represent 10 percent, or more, of total revenues.
Year Ended December 31, 2025 | |||||||||||||||||
| (in thousands) | Agribusiness | Renewables | Total | ||||||||||||||
| Sales and merchandising revenues | $ | 8,260,004 | $ | 2,748,924 | $ | 11,008,928 | |||||||||||
| Cost of sales and merchandising revenues | 7,703,097 | 2,592,180 | 10,295,277 | ||||||||||||||
| Operating, administrative and general expenses | 486,935 | 42,680 | 529,615 | ||||||||||||||
Asset impairment (a) | 14,777 | 3,352 | 18,129 | ||||||||||||||
| Interest expense | 43,482 | 5,681 | 49,163 | ||||||||||||||
Other segment items (b) | 44,874 | 35,071 | 79,945 | ||||||||||||||
| Segment income before income taxes | $ | 56,587 | $ | 140,102 | $ | 196,689 | |||||||||||
| Less: corporate expenses | 55,220 | ||||||||||||||||
| Income before income taxes | $ | 141,469 | |||||||||||||||
(a) Asset impairments of $14.8 million in the Agribusiness segment as a result of closing several smaller underperforming grain and nutrient locations along with a facility that was damaged from a grain explosion. There was also a $3.4 million charge in the Renewables segment related to the discontinued use of equipment for corn oil refinement.
(b) Other segment items for each reportable segment includes:
Agribusiness - property insurance recoveries, interest income, patronage income, amongst other items.
Renewables - clean fuel production tax credits, interest income, patronage income, amongst other items.
Year Ended December 31, 2024 | |||||||||||||||||
| (in thousands) | Agribusiness | Renewables | Total | ||||||||||||||
| Sales and merchandising revenues | $ | 8,456,381 | $ | 2,801,167 | $ | 11,257,548 | |||||||||||
| Cost of sales and merchandising revenues | 7,933,389 | 2,630,233 | 10,563,622 | ||||||||||||||
| Operating, administrative and general expenses | 418,110 | 37,011 | 455,121 | ||||||||||||||
| Interest expense | 30,911 | 2,828 | 33,739 | ||||||||||||||
Other segment items (a) | 35,185 | 8,665 | 43,850 | ||||||||||||||
| Segment income before income taxes | $ | 109,156 | $ | 139,760 | $ | 248,916 | |||||||||||
| Less: corporate expenses | 48,159 | ||||||||||||||||
| Income before income taxes | $ | 200,757 | |||||||||||||||
(a) Other segment items for each reportable segment includes:
Agribusiness - interest income, property insurance recoveries, patronage income, amongst other items.
Renewables - interest income, a gain on the deconsolidation of the ELEMENT joint venture, patronage income, amongst other items.
Year Ended December 31, 2023 | |||||||||||||||||
| (in thousands) | Agribusiness | Renewables | Total | ||||||||||||||
| Sales and merchandising revenues | $ | 11,370,491 | $ | 3,379,621 | $ | 14,750,112 | |||||||||||
| Cost of sales and merchandising revenues | 10,844,788 | 3,159,961 | 14,004,749 | ||||||||||||||
| Operating, administrative and general expenses | 407,615 | 36,934 | 444,549 | ||||||||||||||
Asset impairment (a) | — | 87,156 | 87,156 | ||||||||||||||
| Interest expense | 42,548 | 6,087 | 48,635 | ||||||||||||||
Other segment items (b) | 32,398 | 15,037 | 47,435 | ||||||||||||||
| Segment income before income taxes | $ | 107,938 | $ | 104,520 | $ | 212,458 | |||||||||||
| Less: corporate expenses | 42,895 | ||||||||||||||||
| Income before income taxes | $ | 169,563 | |||||||||||||||
(a) Asset impairment of $87.2 million as the Company recorded an impairment charge related to ELEMENT in the first quarter of 2023, as the plant faced operational and market-based challenges which were exacerbated by a shift in the California Low Carbon Fuel Standard credit markets and high western corn basis.
(b) Other segment items for each reportable segment includes:
Agribusiness - interest income, property insurance recoveries, gains on sales of assets & businesses, patronage income, amongst other items.
Renewables - interest income, a gain on the deconsolidation of ELEMENT joint venture, patronage income, Biofuel Producer Program funds, amongst other items.
Year Ended December 31, 2025 | |||||||||||||||||||||||
| (in thousands) | Agribusiness | Renewables | Other | Total | |||||||||||||||||||
Depreciation and amortization (a) | $ | 82,676 | $ | 48,036 | $ | 2,611 | $ | 133,323 | |||||||||||||||
| Purchases of property, plant and equipment and capitalized software | 176,850 | 49,198 | 7,075 | 233,123 | |||||||||||||||||||
Interest income (b) | 5,490 | 1,696 | 11 | 7,197 | |||||||||||||||||||
(a) Depreciation and amortization disclosed by reportable segment is included within both Cost of sales and merchandising revenues and Operating, administrative and general expenses within the Consolidated Statement of Operations.
(b) Interest income is recorded in Other income, net within the Consolidated Statement of Operations.
Year Ended December 31, 2024 | |||||||||||||||||||||||
| (in thousands) | Agribusiness | Renewables | Other | Total | |||||||||||||||||||
Depreciation and amortization (a) | $ | 72,993 | $ | 49,705 | $ | 5,106 | $ | 127,804 | |||||||||||||||
| Purchases of property, plant and equipment and capitalized software | 95,356 | 49,808 | 4,023 | 149,187 | |||||||||||||||||||
Interest income (b) | 16,018 | 5,075 | — | 21,093 | |||||||||||||||||||
(a) Depreciation and amortization disclosed by reportable segment is included within both Cost of sales and merchandising revenues and Operating, administrative and general expenses within the Consolidated Statement of Operations.
(b) Interest income is recorded in Other income, net within the Consolidated Statement of Operations.
Year Ended December 31, 2023 | |||||||||||||||||||||||
| (in thousands) | Agribusiness | Renewables | Other | Total | |||||||||||||||||||
Depreciation and amortization (a) | $ | 65,377 | $ | 51,408 | $ | 8,321 | $ | 125,106 | |||||||||||||||
| Purchases of property, plant and equipment and capitalized software | 92,252 | 54,546 | 3,645 | 150,443 | |||||||||||||||||||
Interest income (b) | 7,893 | 5,087 | 27 | 13,007 | |||||||||||||||||||
(b) Interest income is recorded in Other income, net within the Consolidated Statement of Operations.
| December 31, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Identifiable assets | |||||||||||||||||
| Agribusiness | $ | 2,847,954 | $ | 2,778,025 | $ | 2,581,977 | |||||||||||
| Renewables | 617,253 | 680,546 | 780,477 | ||||||||||||||
| Other | 247,625 | 662,743 | 492,553 | ||||||||||||||
| Total assets | $ | 3,712,832 | $ | 4,121,314 | $ | 3,855,007 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Revenues from external customers by geographic region | |||||||||||||||||
| United States | $ | 8,428,904 | $ | 8,103,367 | $ | 9,772,619 | |||||||||||
| Canada | 518,779 | 517,131 | 694,774 | ||||||||||||||
| Mexico | 334,275 | 392,142 | 533,012 | ||||||||||||||
| Other | 1,726,970 | 2,244,908 | 3,749,707 | ||||||||||||||
| Total | $ | 11,008,928 | $ | 11,257,548 | $ | 14,750,112 | |||||||||||
Substantially all of the Company's long-lived assets are located within the United States. The Company had approximately $47.8 million and $45.8 million in long-lived assets abroad at December 31, 2025, and 2024, respectively with substantially all of the foreign long-lived assets located within Canada for both periods presented.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.