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Dispositions And Discontinued Operations | 9 Months Ended
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Sep. 30, 2020
Dispositions And Discontinued Operations [Abstract] |
Dispositions And Discontinued Operations | 3. DISPOSITIONS AND DISCONTINUED OPERATIONS DISPOSITIONS Disposition of Green Plains Cattle Company LLC On September 1, 2019, the company, TGAM Agribusiness Fund Holdings-B LP (“TGAM”) and StepStone Atlantic Fund, L.P. (“StepStone”) formed a joint venture and entered into a LLC Agreement. GPCC was previously a wholly owned subsidiary of Green Plains. Green Plains also entered into a Securities Purchase Agreement with TGAM and StepStone, whereby TGAM and StepStone purchased an aggregate of 50% of the membership interests of GPCC from Green Plains for approximately $76.9 million in cash. There was no gain or loss recorded as part of this initial transaction. The LLC Agreement contained certain earn-out or bonus provisions to be paid by or received from GPCC if certain EBITDA thresholds were met. Pursuant to the bonus provision, on August 31, 2020, Green Plains earned $2.0 million which has been recorded within “Gain on sale of asset” on the consolidated statements of operations for the three and nine months ended September 30, 2020. Under the LLC Agreement, Green Plains has certain rights and obligations, including but not limited to, the right or obligation: (i) to designate two Managers to the Board of Managers of GPCC (the “Board”), or in the event the size of the Board is increased, the number of Managers equal to two-fifths of the Board, rounded up, and (ii) to fund additional capital contributions in accordance with their percentage interest upon mutual agreement by Green Plains, TGAM and StepStone. Additionally, TGAM and StepStone both have the right or obligation to designate one Manager, or in the event the size of the Board is increased, the number of Managers equal to one-fifths of the Board, rounded up. Each Manager serving on the Board shall have one vote and a majority of the Managers serving on the Board shall constitute a quorum for the transaction of business of the Board. Green Plains’ allocation under the LLC Agreement will be subject to certain adjustments. The assets and liabilities of the GPCC at closing on September 1, 2019 were as follows (in thousands):
Amounts of Identifiable Assets Disposed and Liabilities Relinquished
Cash |  | $ | 2
Accounts receivable, net |  |  | 17,920
Inventory |  |  | 387,534
Derivative financial instruments |  |  | 48,189
Property and equipment |  |  | 71,678
Other assets |  |  | 2,291
Current liabilities |  |  | (49,297)
Short-term notes payable and other borrowings |  |  | (38)
Current maturities of long-term debt |  |  | (324,028)
Long-term debt |  |  | (80)
Other liabilities |  |  | (403)
| Total identifiable net assets disposed | $ | 153,768
Subsequent to September 30, 2020, the company sold its remaining interest in GPCC. Refer to Note 17 – Subsequent Events for further discussion. DISCONTINUED OPERATIONS GPCC is no longer consolidated in the company’s consolidated financial statements and the GPCC investment is accounted for using the equity method of accounting. Additionally, the company concluded that the disposition of GPCC met the requirements under ASC 205-20. As such, GPCC results prior to its disposition are classified as discontinued operations for all applicable periods. Financial results of GPCC were previously recorded within the food and ingredients segment. ‎ Summarized Results of Discontinued Operations The following table presents the results of our discontinued operations (in thousands). GPCC was disposed of on September 1, 2019, as such operational results through August 31, 2019 are included in the fiscal year 2019 amounts presented below.
| Three Months Ended September 30, 2019 (1) |  | Nine Months Ended September 30, 2019 (1)
Product revenues | $ | 160,113 |  | $ | 638,122
Costs and expenses |  |  |  |  |
Cost of goods sold (excluding depreciation and amortization expenses reflected below) |  | 150,214 |  |  | 614,671
Selling, general and administrative expenses |  | 1,472 |  |  | 5,931
Depreciation and amortization expenses |  | 1,004 |  |  | 4,199
Total costs and expenses |  | 152,690 |  |  | 624,801
Operating income |  | 7,423 |  |  | 13,321
Other income (expense) |  |  |  |  |
Interest income |  | 42 |  |  | 182
Interest expense |  | (3,001) |  |  | (12,417)
Total other expense |  | (2,959) |  |  | (12,235)
Income before income taxes |  | 4,464 |  |  | 1,086
Income tax expense |  | (1,071) |  |  | (120)
Net income | $ | 3,393 |  | $ | 966
(1)Product revenues, costs of goods sold and selling, general and administrative expenses include certain revenue and expense items which were previously considered intercompany transactions prior to the disposition of GPCC and therefore eliminated upon consolidation. These revenue and costs of goods sold transactions total $5.5 million and $14.5 million for the three and nine months ended September 30, 2019, respectively.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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