| 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 and cattle feedlot operations, 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):
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2014
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2013
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2014
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2013
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Revenues:
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Ethanol production:
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Revenues from external customers (1)
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$
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(71,054)
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$
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34,338
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$
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(98,486)
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$
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78,745
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Intersegment revenues
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603,529
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496,066
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1,169,332
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960,717
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Total segment revenues
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532,475
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530,404
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1,070,846
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1,039,462
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Corn oil production:
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Revenues from external customers (1)
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(7)
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-
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-
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-
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Intersegment revenues
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20,381
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16,315
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36,765
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32,014
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Total segment revenues
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20,374
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16,315
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36,765
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32,014
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Agribusiness:
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Revenues from external customers (1)
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33,488
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15,998
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51,729
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38,124
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Intersegment revenues
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347,116
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159,170
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651,354
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224,088
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Total segment revenues
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380,604
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175,168
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703,083
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262,212
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Marketing and distribution:
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Revenues from external customers (1)
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875,431
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754,360
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1,618,504
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1,453,303
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Intersegment revenues
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34,595
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2,123
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68,060
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3,413
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Total segment revenues
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910,026
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756,483
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1,686,564
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1,456,716
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Revenues including intersegment activity
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1,843,479
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1,478,370
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3,497,258
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2,790,404
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Intersegment eliminations
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(1,005,621)
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(673,674)
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(1,925,511)
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(1,220,232)
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Revenues as reported
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$
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837,858
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$
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804,696
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$
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1,571,747
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$
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1,570,172
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(1)
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Revenues from external customers include realized gains and losses from derivative financial instruments. |
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2014
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2013
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2014
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2013
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Gross profit:
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Ethanol production
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$
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35,171
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$
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10,729
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$
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106,859
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$
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11,959
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Corn oil production
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10,931
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7,873
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18,746
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15,782
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Agribusiness
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2,499
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945
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5,475
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2,171
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Marketing and distribution
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9,899
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13,404
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50,615
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30,459
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Intersegment eliminations
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19,815
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(340)
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(2,631)
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(546)
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$
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78,315
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$
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32,611
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$
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179,064
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$
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59,825
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Operating income:
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Ethanol production
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$
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30,111
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$
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7,006
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$
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96,337
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$
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4,657
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Corn oil production
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10,874
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7,821
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18,582
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15,631
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Agribusiness
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1,269
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248
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2,205
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617
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Marketing and distribution
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4,391
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9,210
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36,885
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22,196
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Intersegment eliminations
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19,815
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(340)
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(2,571)
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(500)
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Corporate activities
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(7,514)
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(5,383)
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(14,148)
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(11,334)
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$
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58,946
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$
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18,562
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$
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137,290
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$
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31,267
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The following table sets forth revenues by product line for the periods indicated (in thousands):
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2014
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2013
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2014
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2013
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Revenues:
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Ethanol
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$
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618,386
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$
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624,367
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$
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1,148,427
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$
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1,203,902
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Distillers grains
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143,695
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123,020
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280,687
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254,440
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Corn oil
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22,196
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17,276
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39,328
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34,372
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Grain
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44,172
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28,547
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73,372
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54,867
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Other
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9,409
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11,486
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29,933
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22,591
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$
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837,858
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$
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804,696
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$
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1,571,747
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$
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1,570,172
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The following table sets forth total assets by operating segment (in thousands):
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June 30,
|
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December 31,
|
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2014
|
|
2013
|
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Total assets:
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Ethanol production
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$
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917,151
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$
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911,315
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Corn oil production
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34,951
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28,569
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Agribusiness
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118,028
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165,570
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Marketing and distribution
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299,156
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258,361
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Corporate assets
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266,272
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175,210
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Intersegment eliminations
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(9,667)
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(6,980)
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$
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1,625,891
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$
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1,532,045
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