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Segment Information
 12 Months Ended
Dec. 31, 2014
Segment Information [Abstract]  
Segment Information

5.  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 fuel terminals, 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 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2014

 

2013

 

2012

Revenues:

 

 

 

 

 

 

 

 

 

Ethanol production:

 

 

 

 

 

 

 

 

 

Revenues from external customers (1)

 

$
(51,424)

 

$
116,272 

 

$
200,443 

Intersegment revenues

 

 
2,222,446 

 

 
1,934,770 

 

 
1,708,800 

Total segment revenues

 

 
2,171,022 

 

 
2,051,042 

 

 
1,909,243 

Corn oil production:

 

 

 

 

 

 

 

 

 

Revenues from external customers (1)

 

 

 -

 

 

 -

 

 
529 

Intersegment revenues

 

 
79,750 

 

 
69,163 

 

 
57,315 

Total segment revenues

 

 
79,750 

 

 
69,163 

 

 
57,844 

Agribusiness:

 

 

 

 

 

 

 

 

 

Revenues from external customers (1)

 

 
100,436 

 

 
51,883 

 

 
408,622 

Intersegment revenues

 

 
1,208,120 

 

 
761,835 

 

 
176,062 

Total segment revenues

 

 
1,308,556 

 

 
813,718 

 

 
584,684 

Marketing and distribution:

 

 

 

 

 

 

 

 

 

Revenues from external customers (1)

 

 
3,186,599 

 

 
2,872,856 

 

 
2,867,276 

Intersegment revenues

 

 
171,201 

 

 
21,790 

 

 
355 

Total segment revenues

 

 
3,357,800 

 

 
2,894,646 

 

 
2,867,631 

Revenues including intersegment activity

 

 
6,917,128 

 

 
5,828,569 

 

 
5,419,402 

Intersegment eliminations

 

 
(3,681,517)

 

 
(2,787,558)

 

 
(1,942,532)

Revenues as reported

 

$
3,235,611 

 

$
3,041,011 

 

$
3,476,870 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

 

 

Ethanol production

 

$
236,096 

 

$
79,109 

 

$
(4,895)

Corn oil production

 

 
42,937 

 

 
36,615 

 

 
32,388 

Agribusiness

 

 
14,833 

 

 
6,258 

 

 
35,973 

Marketing and distribution

 

 
80,326 

 

 
57,671 

 

 
32,362 

Intersegment eliminations

 

 
606 

 

 
(6,633)

 

 
943 

 

 

$
374,798 

 

$
173,020 

 

$
96,771 

Operating income (loss):

 

 

 

 

 

 

 

 

 

Ethanol production

 

$
214,497 

 

$
63,012 

 

$
(20,393)

Corn oil production

 

 
42,651 

 

 
36,569 

 

 
32,140 

Agribusiness

 

 
8,497 

 

 
3,324 

 

 
60,030 

Marketing and distribution

 

 
52,669 

 

 
40,971 

 

 
17,290 

Intersegment eliminations

 

 
666 

 

 
(6,588)

 

 
977 

Corporate activities

 

 
(32,706)

 

 
(29,437)

 

 
(25,159)

 

 

$
286,274 

 

$
107,851 

 

$
64,885 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes:

 

 

 

 

 

 

 

 

 

Ethanol production

 

$
198,598 

 

$
44,061 

 

$
(42,430)

Corn oil production

 

 
42,655 

 

 
36,570 

 

 
32,142 

Agribusiness

 

 
5,996 

 

 
793 

 

 
54,172 

Marketing and distribution

 

 
47,921 

 

 
37,098 

 

 
13,768 

Intersegment eliminations

 

 
666 

 

 
(6,588)

 

 
977 

Corporate activities

 

 
(45,406)

 

 
(39,653)

 

 
(33,473)

 

 

$
250,430 

 

$
72,281 

 

$
25,156 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2014

 

2013

 

2012

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

Ethanol production

 

$
52,393 

 

$
45,312 

 

$
44,239 

Corn oil production

 

 
1,756 

 

 
1,175 

 

 
1,156 

Agribusiness

 

 
1,441 

 

 
362 

 

 
4,209 

Marketing and distribution

 

 
3,096 

 

 
2,836 

 

 
1,942 

Corporate activities

 

 
1,676 

 

 
1,317 

 

 
1,282 

 

 

$
60,362 

 

$
51,002 

 

$
52,828 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

Ethanol production

 

$
22,749 

 

$
18,988 

 

$
22,081 

Corn oil production

 

 

 -

 

 

 -

 

 

 -

Agribusiness

 

 
2,591 

 

 
2,531 

 

 
5,881 

Marketing and distribution

 

 
5,267 

 

 
4,079 

 

 
3,532 

Intersegment eliminations

 

 
(238)

 

 
(982)

 

 
(1,137)

Corporate activities

 

 
9,539 

 

 
8,741 

 

 
7,164 

 

 

$
39,908 

 

$
33,357 

 

$
37,521 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

Ethanol production

 

$
32,050 

 

$
8,469 

 

$
7,637 

Corn oil production

 

 
8,154 

 

 
1,782 

 

 
725 

Agribusiness

 

 
17,166 

 

 
6,514 

 

 
2,006 

Marketing and distribution

 

 
1,334 

 

 
2,347 

 

 
15,791 

Corporate activities

 

 
2,829 

 

 
652 

 

 
617 

 

 

$
61,533 

 

$
19,764 

 

$
26,776 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2014

 

2013

Total assets:

 

 

 

 

 

 

Ethanol production

 

$
983,289 

 

$
911,315 

Corn oil production

 

 
31,405 

 

 
28,569 

Agribusiness

 

 
234,626 

 

 
165,570 

Marketing and distribution

 

 
305,675 

 

 
258,361 

Corporate assets

 

 
290,123 

 

 
175,210 

Intersegment eliminations

 

 
(16,561)

 

 
(6,980)

 

 

$
1,828,557 

 

$
1,532,045 

 

The following table sets forth revenues by product line (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

2014

 

2013

 

2012

Revenues:

 

 

 

 

 

 

 

 

 

Ethanol

 

$
2,362,812 

 

$
2,339,470 

 

$
2,507,119 

Distillers grains

 

 
531,696 

 

 
488,396 

 

 
433,088 

Corn oil

 

 
99,167 

 

 
74,251 

 

 
58,640 

Grain

 

 
174,997 

 

 
92,487 

 

 
348,413 

Other

 

 
66,939 

 

 
46,407 

 

 
129,610 

 

 

$
3,235,611 

 

$
3,041,011 

 

$
3,476,870 

 

Revenues from two customers, controlled by the same entity, of the Company’s marketing and distribution segment totaled approximately $325.0 million, or 10.0%, of the Company’s consolidated revenues.