v2.4.0.8
Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Information [Abstract]  
Segment Information

4.  SEGMENT INFORMATION

 

Company management reviews financial and operating performance in the following four separate operating segments: (1) production of ethanol and distillers grains, collectively referred to as ethanol production, (2) corn oil production, (3) grain handling and storage, collectively referred to as agribusiness, and (4) marketing, merchant trading and logistics services for Company-produced and third-party ethanol, distillers grains, corn oil and other commodities, and the operation of blending and terminaling facilities, collectively referred to as marketing and distribution. Selling, general and administrative expenses, primarily consisting of compensation of corporate employees, professional fees and overhead costs not directly related to a specific operating segment, are reflected in the table below as corporate activities.

 

During the normal course of business, the Company enters into transactions between segments. Examples of these intersegment transactions include, but are not limited to, the ethanol production segment selling ethanol to the marketing and distribution segment and the agribusiness segment selling grain to the ethanol production segment. These intersegment activities are recorded by each segment at prices approximating market and treated as if they are third-party transactions. Consequently, these transactions impact segment performance. However, revenues and corresponding costs are eliminated in consolidation and do not impact the Company’s consolidated results.

 

The following tables set forth certain financial data for the Company’s operating segments for the periods indicated (in thousands):

 

 

 

 

 

 

 

 

Three Months Ended
March 31,

 

2014

 

2013

Revenues:

 

 

 

 

 

Ethanol production:

 

 

 

 

 

Revenues from external customers (1)

$
(27,431)

 

$
44,408 

Intersegment revenues

 
565,803 

 

 
464,651 

Total segment revenues

 
538,372 

 

 
509,059 

Corn oil production:

 

 

 

 

 

Revenues from external customers (1)

 
7 

 

 

 -

Intersegment revenues

 
16,384 

 

 
15,699 

Total segment revenues

 
16,391 

 

 
15,699 

Agribusiness:

 

 

 

 

 

Revenues from external customers (1)

 
18,241 

 

 
22,125 

Intersegment revenues

 
304,238 

 

 
64,919 

Total segment revenues

 
322,479 

 

 
87,044 

Marketing and distribution:

 

 

 

 

 

Revenues from external customers (1)

 
743,072 

 

 
698,943 

Intersegment revenues

 
33,465 

 

 
1,289 

Total segment revenues

 
776,537 

 

 
700,232 

Revenues including intersegment activity

 
1,653,779 

 

 
1,312,034 

Intersegment eliminations

 
(919,890)

 

 
(546,558)

Revenues as reported

$
733,889 

 

$
765,476 

 

 

 

(1)

Revenues from external customers include realized gains and losses from derivative financial instruments.

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
March 31,

 

2014

 

2013

Gross profit:

 

 

 

 

 

Ethanol production

$
71,688 

 

$
1,230 

Corn oil production

 
7,815 

 

 
7,909 

Agribusiness

 
2,976 

 

 
1,226 

Marketing and distribution

 
40,716 

 

 
17,055 

Intersegment eliminations

 
(22,446)

 

 
(206)

 

$
100,749 

 

$
27,214 

Operating income (loss):

 

 

 

 

 

Ethanol production

$
66,226 

 

$
(2,349)

Corn oil production

 
7,708 

 

 
7,810 

Agribusiness

 
935 

 

 
369 

Marketing and distribution

 
32,494 

 

 
12,986 

Intersegment eliminations

 
(22,386)

 

 
(161)

Corporate activities

 
(6,634)

 

 
(5,951)

 

$
78,343 

 

$
12,704 

 

The following table sets forth revenues by product line for the periods indicated (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
March 31,

 

2014

 

2013

Revenues:

 

 

 

 

 

Ethanol

$
530,039 

 

$
579,493 

Distillers grains

 
136,992 

 

 
131,548 

Corn oil

 
17,132 

 

 
17,096 

Grain

 
29,201 

 

 
26,320 

Other

 
20,525 

 

 
11,019 

 

$
733,889 

 

$
765,476 

 

 

The following table sets forth total assets by operating segment (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

2014

 

2013

Total assets:

 

 

 

 

 

Ethanol production

$
879,027 

 

$
911,315 

Corn oil production

 
35,197 

 

 
28,569 

Agribusiness

 
101,255 

 

 
165,570 

Marketing and distribution

 
308,802 

 

 
258,361 

Corporate assets

 
217,456 

 

 
175,210 

Intersegment eliminations

 
(29,368)

 

 
(6,980)

 

$
1,512,369 

 

$
1,532,045