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Segment Information
 3 Months Ended
Mar. 31, 2017
Segment Information [Abstract]  
Segment Information

4.  SEGMENT INFORMATION



As a result of acquisitions during 2016, the company implemented organizational segment changes during the fourth quarter of 2016, whereby the company management now 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 and energy services, which includes grain handling and storage and marketing and merchant trading for company-produced and third-party ethanol, distillers grains, corn oil and other commodities, (3) food and ingredients, which includes the cattle feedlot, vinegar production and food-grade corn oil operations and (4) partnership, which includes fuel storage and transportation services. Prior periods have been reclassified to conform to the revised segment presentation.



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 conduct business with each other. For example, the agribusiness and energy services segment procures grain and natural gas and sells products, including ethanol, distillers grains and corn oil for the ethanol production segment. The partnership segment provides fuel storage and transportation services for the agribusiness and energy services segment. These intersegment activities are treated like third-party transactions with origination, marketing and storage fees charged at estimated 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.



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





 

 

 

 

 



Three Months Ended
March 31,



2017

 

2016

Revenues:

 

 

 

 

 

Ethanol production:

 

 

 

 

 

Revenues from external customers

$

 619,879 

 

$

 528,328 

Intersegment revenues

 

 1,496 

 

 

 -

Total segment revenues

 

 621,375 

 

 

 528,328 

Agribusiness and energy services:

 

 

 

 

 

Revenues from external customers

 

 168,311 

 

 

 160,144 

Intersegment revenues

 

 9,492 

 

 

 7,409 

Total segment revenues

 

 177,803 

 

 

 167,553 

Food and ingredients:

 

 

 

 

 

Revenues from external customers

 

 98,022 

 

 

 58,711 

Intersegment revenues

 

 38 

 

 

 37 

Total segment revenues

 

 98,060 

 

 

 58,748 

Partnership:

 

 

 

 

 

Revenues from external customers

 

 1,472 

 

 

 2,021 

Intersegment revenues

 

 25,757 

 

 

 21,768 

Total segment revenues

 

 27,229 

 

 

 23,789 

Revenues including intersegment activity

 

 924,467 

 

 

 778,418 

Intersegment eliminations

 

 (36,783)

 

 

 (29,214)

Revenues as reported

$

 887,684 

 

$

 749,204 













 

 

 

 

 



Three Months Ended
March 31,



2017

 

2016

Cost of goods sold:

 

 

 

 

 

Ethanol production

$

 599,138 

 

$

 534,498 

Agribusiness and energy services

 

 166,394 

 

 

 159,415 

Food and ingredients

 

 83,035 

 

 

 59,254 

Partnership

 

 -

 

 

 -

Intersegment eliminations

 

 (36,671)

 

 

 (28,480)



$

 811,896 

 

$

 724,687 











 

 

 

 

 



Three Months Ended
March 31,



2017

 

2016

Operating income (loss):

 

 

 

 

 

Ethanol production

$

 (6,598)

 

$

 (29,565)

Agribusiness and energy services

 

 6,369 

 

 

 3,737 

Food and ingredients

 

 9,626 

 

 

 (1,363)

Partnership

 

 16,619 

 

 

 13,071 

Intersegment eliminations

 

 (75)

 

 

 (698)

Corporate activities

 

 (8,549)

 

 

 (7,828)



$

 17,392 

 

$

 (22,646)







 

 

 

 

 



Three Months Ended
March 31,



2017

 

2016

Depreciation and amortization:

 

 

 

 

 

Ethanol production

$

 20,342 

 

$

 15,780 

Agribusiness and energy services

 

 660 

 

 

 306 

Food and ingredients

 

 2,880 

 

 

 271 

Partnership

 

 1,254 

 

 

 1,217 

Corporate activities

 

 947 

 

 

 571 



$

 26,083 

 

$

 18,145 



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







 

 

 

 

 



Three Months Ended
March 31,



2017

 

2016

Revenues:

 

 

 

 

 

Ethanol

$

 597,407 

 

$

 499,050 

Distillers grains

 

 118,696 

 

 

 112,218 

Corn oil

 

 40,697 

 

 

 20,875 

Grain

 

 26,024 

 

 

 51,055 

Food and ingredients

 

 90,485 

 

 

 56,232 

Service revenues

 

 1,472 

 

 

 2,021 

Other

 

 12,903 

 

 

 7,753 



$

 887,684 

 

$

 749,204 



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





 

 

 

 

 



March 31,

 

December 31,



2017

 

2016

Total assets (1):

 

 

 

 

 

Ethanol production

$

 1,161,730 

 

$

 1,206,155 

Agribusiness and energy services

 

 527,974 

 

 

 579,977 

Food and ingredients

 

 415,790 

 

 

 406,429 

Partnership

 

 74,149 

 

 

 74,999 

Corporate assets

 

 258,654 

 

 

 257,652 

Intersegment eliminations

 

 (17,151)

 

 

 (18,720)



$

 2,421,146 

 

$

 2,506,492 



(1)

Asset balances by segment exclude intercompany receivable balances.