Page 114 - New8814 GP 2011_AR-fnl

Basic HTML Version

The Company accrues interest and penalties associated with uncertain tax positions as part of selling, general and
administrative expense.
Operating Leases
The Company leases certain facilities and parcels of land under agreements that expire at various dates. For accounting
purposes, rent expense is based on a straight-line amortization of the total payments required over the lease term. The
Company incurred lease expenses of $16.8 million, $11.3 million and $9.4 million during the years ended December 31,
2011, 2010 and 2009, respectively. Aggregate minimum lease payments under these agreements for future fiscal years are as
follows (in thousands):
Year Ending December 31,
$ 16,566
$ 52,686
As of December 31, 2011, the Company had contracted for future grain deliveries valued at $237.6 million, natural gas
deliveries valued at approximately $8.3 million, ethanol product deliveries valued at approximately $12.5 million and
distillers grains product deliveries valued at approximately $1.8 million.
In April 2011, Aventine Renewable Energy, Inc. filed a complaint in the United States Bankruptcy Court for the District
of Delaware in connection with its Chapter 11 bankruptcy naming as defendants Green Plains Renewable Energy, Inc., Green
Plains Obion LLC, Green Plains Bluffton LLC, Green Plains VBV LLC and Green Plains Trade Group LLC. This action
alleges $24.4 million of damages from preferential transfers or, in the alternative, $28.4 million of damages from fraudulent
transfers under an ethanol marketing agreement and an unspecified amount of damages for a continuing breach of a
termination agreement related to rail cars. The Company is unable to predict the outcome of these matters at this time, and
any views formed as to the viability of these claims or the financial exposure which could result may change as the matters
proceed through their course. The Company intends to defend these claims vigorously.
In addition to the above-described proceeding, the Company is currently involved in other litigation that has arisen in the
ordinary course of business, but it does not believe that any other pending litigation will have a material adverse effect on its
financial position, results of operations or cash flows.
The Company offers eligible employees a comprehensive employee benefits plan that includes health, dental, vision, life
and accidental death, short-term disability, long-term disability, and flexible spending accounts. Additionally, the Company
offers a 401(k) retirement plan that enables eligible employees to save on a tax-deferred basis up to the limits allowable under
the Internal Revenue Code. The Company matches up to 4% of eligible employee contributions. Employee and employer
contributions are 100% vested immediately. Employer contributions to the 401(k) plan were $ 0.9 million, $0.6 million and
$0.5 for the years ended December 31, 2011, 2010 and 2009 respectively.
Green Plains Grain contributes to a defined benefit pension plan. Although benefits under the plan were frozen as of
January 1, 2009, Green Plains Grain remains obligated to ensure that the plan is funded in accordance with applicable
requirements. As of December 31, 2011, the assets of the plan were $5.6 million and liabilities of the plan were $6.3 million.
Excess plan liabilities over plan assets of $0.7 million and $0.2 million are included in other liabilities on the consolidated