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Segment Information
 9 Months Ended
Sep. 30, 2016
Segment Information [Abstract]  
Segment Information

5.  SEGMENT INFORMATION



Company management reports the financial and operating performance in the following four operating segments: (1) ethanol production, which includes the production of ethanol, distillers grains and corn oil, (2) agribusiness, which includes grain handling and storage and cattle feedlot operations, (3) marketing and distribution, which includes marketing and merchant trading for company-produced and third-party ethanol, distillers grains, corn oil, natural gas and other commodities, and (4) partnership, which includes fuel storage and transportation services.



Under GAAP, when transferring assets between entities under common control, the entity receiving the net assets initially recognizes the carrying amounts of the assets and liabilities at the date of transfer. The transferee’s prior period financial statements are restated for all periods its operations were part of the parent’s consolidated financial statements. On July 1, 2015, Green Plains Partners received ethanol storage and railcar assets and liabilities in a transfer between entities under common control. Effective January 1, 2016, the partnership acquired the storage and transportation assets of the Hereford and Hopewell production facilities in a transfer between entities under common control and entered into amendments to the related commercial agreements with Green Plains Trade. The transferred assets and liabilities are recognized at our historical cost and reflected retroactively in the segment information of the consolidated financial statements presented in this Form 10-Q. The assets of Green Plains Partners were previously included in the ethanol production and marketing and distribution segments. Expenses related to the ethanol storage and railcar assets, such as depreciation, amortization and railcar lease expenses, are also reflected retroactively in the following segment information. There were no revenues related to the operation of the ethanol storage and railcar assets in the partnership segment prior to their respective transfers to the partnership, when the related commercial agreements with Green Plains Trade became effective.



Corporate activities include selling, general and administrative expenses, consisting primarily of compensation, professional fees and overhead costs not directly related to a specific operating segment.



During the normal course of business, the operating segments do business with each other. For example, the ethanol production segment sells ethanol to the marketing and distribution segment, the agribusiness segment sells grain to the ethanol production segment and the partnership segment provides fuel storage and transportation services for the marketing and distribution segment. These intersegment activities are treated like third-party transactions and recorded at market values. Consequently, these transactions affect segment performance; however, they do not impact the company’s consolidated results since the revenues and corresponding costs are eliminated in consolidation.



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





 

 

 

 

 

 

 

 

 

 

 



Three Months Ended
September 30,

 

Nine Months Ended
September 30,



2016

 

2015

 

2016

 

2015



 

 

 

 

 

 

 

 

 

 

 

Revenues (1):

 

 

 

 

 

 

 

 

 

 

 

Ethanol production:

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

$

 74,892 

 

$

 37,702 

 

$

 222,424 

 

$

 140,640 

Intersegment revenues

 

 457,549 

 

 

 352,215 

 

 

 1,249,333 

 

 

 1,145,879 

Total segment revenues

 

 532,441 

 

 

 389,917 

 

 

 1,471,757 

 

 

 1,286,519 

Agribusiness:

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

 83,615 

 

 

 54,519 

 

 

 242,049 

 

 

 191,495 

Intersegment revenues

 

 359,715 

 

 

 255,671 

 

 

 1,058,813 

 

 

 783,388 

Total segment revenues

 

 443,330 

 

 

 310,190 

 

 

 1,300,862 

 

 

 974,883 

Marketing and distribution:

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

 681,279 

 

 

 648,413 

 

 

 2,008,268 

 

 

 1,887,184 

Intersegment revenues

 

 54,704 

 

 

 21,914 

 

 

 165,558 

 

 

 93,176 

Total segment revenues

 

 735,983 

 

 

 670,327 

 

 

 2,173,826 

 

 

 1,980,360 

Partnership:

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

 2,066 

 

 

 2,163 

 

 

 6,042 

 

 

 6,356 

Intersegment revenues

 

 24,139 

 

 

 19,247 

 

 

 69,445 

 

 

 21,895 

Total segment revenues

 

 26,205 

 

 

 21,410 

 

 

 75,487 

 

 

 28,251 

Revenues including intersegment activity

 

 1,737,959 

 

 

 1,391,844 

 

 

 5,021,932 

 

 

 4,270,013 

Intersegment eliminations

 

 (896,107)

 

 

 (649,047)

 

 

 (2,543,149)

 

 

 (2,044,338)

Revenues as reported

$

 841,852 

 

$

 742,797 

 

$

 2,478,783 

 

$

 2,225,675 







(1)

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









 

 

 

 

 

 

 

 

 

 

 



Three Months Ended
September 30,

 

Nine Months Ended
September 30,



2016

 

2015

 

2016

 

2015



 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold:

 

 

 

 

 

 

 

 

 

 

 

Ethanol production

$

 494,225 

 

$

 365,348 

 

$

 1,410,720 

 

$

 1,184,595 

Agribusiness

 

 434,582 

 

 

 307,995 

 

 

 1,278,211 

 

 

 962,979 

Marketing and distribution

 

 726,323 

 

 

 656,934 

 

 

 2,147,803 

 

 

 1,950,327 

Intersegment eliminations

 

 (896,247)

 

 

 (650,929)

 

 

 (2,543,639)

 

 

 (2,049,522)



$

 758,883 

 

$

 679,348 

 

$

 2,293,095 

 

$

 2,048,379 











 

 

 

 

 

 

 

 

 

 

 



Three Months Ended
September 30,

 

Nine Months Ended
September 30,



2016

 

2015

 

2016

 

2015



 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

Ethanol production

$

 15,311 

 

$

 5,528 

 

$

 (7,385)

 

$

 43,139 

Agribusiness

 

 6,251 

 

 

 365 

 

 

 15,039 

 

 

 5,833 

Marketing and distribution

 

 5,252 

 

 

 9,406 

 

 

 13,908 

 

 

 17,446 

Partnership

 

 15,084 

 

 

 11,030 

 

 

 42,958 

 

 

 416 

Intersegment eliminations

 

 141 

 

 

 1,882 

 

 

 491 

 

 

 5,264 

Corporate activities

 

 (11,184)

 

 

 (8,378)

 

 

 (29,393)

 

 

 (23,759)



$

 30,855 

 

$

 19,833 

 

$

 35,618 

 

$

 48,339 



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







 

 

 

 

 

 

 

 

 

 

 



Three Months Ended
September 30,

 

Nine Months Ended
September 30,



2016

 

2015

 

2016

 

2015



 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Ethanol

$

 550,724 

 

$

 468,005 

 

$

 1,622,168 

 

$

 1,381,203 

Distillers grains

 

 129,345 

 

 

 121,273 

 

 

 357,070 

 

 

 359,164 

Corn oil

 

 49,844 

 

 

 28,949 

 

 

 111,727 

 

 

 67,649 

Grain

 

 30,003 

 

 

 47,106 

 

 

 145,800 

 

 

 199,982 

Cattle

 

 70,012 

 

 

 56,904 

 

 

 201,423 

 

 

 168,381 

Service revenues

 

 2,066 

 

 

 2,163 

 

 

 6,042 

 

 

 6,356 

Other

 

 9,858 

 

 

 18,397 

 

 

 34,553 

 

 

 42,940 



$

 841,852 

 

$

 742,797 

 

$

 2,478,783 

 

$

 2,225,675 



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





 

 

 

 

 



September 30,

 

December 31,



2016

 

2015



 

 

 

 

 

Total assets (1):

 

 

 

 

 

Ethanol production

$

 1,199,374 

 

$

 1,002,270 

Agribusiness

 

 271,290 

 

 

 300,364 

Marketing and distribution

 

 279,368 

 

 

 230,651 

Partnership

 

 75,541 

 

 

 81,430 

Corporate assets

 

 362,121 

 

 

 314,068 

Intersegment eliminations

 

 (10,736)

 

 

 (10,863)



$

 2,176,958 

 

$

 1,917,920 



(1)

Asset balances by segment exclude intercompany payable and receivable balances.