Quarterly report pursuant to Section 13 or 15(d)

Leases, Other Commitments, and Contingencies

v3.19.3
Leases, Other Commitments, and Contingencies
9 Months Ended
Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]  
Leases, Other Commitments, and Contingencies

7. LEASES, OTHER COMMITMENTS, AND CONTINGENCIES

Litigation and Claims

We are not currently a party to any material pending legal proceeding.

Leases

We lease our headquarters facility, office equipment, and other items. Our headquarters lease involved the sale of land and improvements to a third party who then constructed the facility. This lease is considered a financing lease.

We also have an equipment financing arrangement that is considered a financing lease. This arrangement has a term of four years for each draw. We were required to deposit cash into a restricted account in an amount equal to the future rent payments required by the lease. As of September 30, 2019 this restricted cash totaled $1.5 million. We have the option to request the return of excess collateral annually in December.

Rent expense from operating leases was as follows:

 

Three months ended

 

 

Nine months ended

 

September 30,

 

 

September 30,

In Thousands

2019

 

 

2018

 

 

2019

 

 

2018

Rent expense from operating leases

$

22

 

 

$

12

 

 

$

91

 

 

$

171

Other Commitments

As of September 30, 2019, we have committed to purchase grain from farmers at dates throughout 2020 and 2021 aggregating $32.7 million based on current commodity futures market prices, other payments to growers and estimated yields per acre. This amount is not recorded in the financial statements because we have not taken delivery of the grain as of September 30, 2019.