Revenue

9 Months Ended

Sep. 30, 2020

2. REVENUE

Revenue Recognition

Revenue is recognized when obligations under the terms of a contract with a customer are satisfied. Generally this occurs with the transfer of control of products or services. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods or providing services. Sales, value add, and other taxes the company collects concurrent with revenue-producing activities are excluded from revenue.

Revenue by Source

The following tables disaggregate revenue by major source (in thousands):


	Three Months Ended September 30, 2020
	Ethanol Production		Agribusiness & Energy Services		Food & Ingredients		Partnership		Eliminations		Total
Revenues:
Revenues from contracts with customers under ASC 606:
Ethanol	$	-	$	-	$	-	$	-	$	-	$	-
Distillers grains		4,095		-		-		-		-		4,095
Corn oil		-		2,938		-		-		-		2,938
Service revenues		-		-		-		920		-		920
Other		66		1,408		-		-		-		1,474
Intersegment revenues		25		-		-		2,289		(2,314)		-
Total revenues from contracts with customers		4,186		4,346		-		3,209		(2,314)		9,427
Revenues from contracts accounted for as derivatives under ASC 815 ⁽¹⁾:
Ethanol		263,390		56,895		-		-		-		320,285
Distillers grains		51,692		10,696		-		-		-		62,388
Corn oil		12,433		5,805		-		-		-		18,238
Grain		1		11,099		-		-		-		11,100
Other		1,276		1,233		-		-		-		2,509
Intersegment revenues		-		5,354		-		-		(5,354)		-
Total revenues from contracts accounted for as derivatives		328,792		91,082		-		-		(5,354)		414,520
Leasing revenues under ASC 842 ⁽²⁾:		-		-		-		18,173		(18,058)		115
Total Revenues	$	332,978	$	95,428	$	-	$	21,382	$	(25,726)	$	424,062


	Nine Months Ended September 30, 2020
	Ethanol Production		Agribusiness & Energy Services		Food & Ingredients		Partnership		Eliminations		Total
Revenues:
Revenues from contracts with customers under ASC 606:
Ethanol	$	-	$	-	$	-	$	-	$	-	$	-
Distillers grains		25,159		-		-		-		-		25,159
Corn oil		-		2,938		-		-		-		2,938
Service revenues		-		-		-		3,366		-		3,366
Other		4,257		3,668		-		-		-		7,925
Intersegment revenues		75		-		-		6,201		(6,276)		-
Total revenues from contracts with customers		29,491		6,606		-		9,567		(6,276)		39,388
Revenues from contracts accounted for as derivatives under ASC 815 ⁽¹⁾:
Ethanol		849,298		243,930		-		-		-		1,093,228
Distillers grains		179,854		28,960		-		-		-		208,814
Corn oil		36,621		23,681		-		-		-		60,302
Grain		7		26,773		-		-		-		26,780
Other		3,974		12,128		-		-		-		16,102
Intersegment revenues		-		17,030		-		-		(17,030)		-
Total revenues from contracts accounted for as derivatives		1,069,754		352,502		-		-		(17,030)		1,405,226
Leasing revenues under ASC 842 ⁽²⁾:		-		-		-		52,467		(52,126)		341
Total Revenues	$	1,099,245	$	359,108	$	-	$	62,034	$	(75,432)	$	1,444,955

‎


	Three Months Ended September 30, 2019
	Ethanol Production		Agribusiness & Energy Services		Food & Ingredients		Partnership		Eliminations		Total
Revenues:
Revenues from contracts with customers under ASC 606:
Ethanol	$	-	$	-	$	-	$	-	$	-	$	-
Distillers grains		16,455		-		-		-		-		16,455
Service revenues		-		-		-		1,275		-		1,275
Other		127		895		-		-		-		1,022
Intersegment revenues		24		-		-		2,046		(2,070)		-
Total revenues from contracts with customers		16,606		895		-		3,321		(2,070)		18,752
Revenues from contracts accounted for as derivatives under ASC 815 ⁽¹⁾:
Ethanol		389,847		111,454		-		-		-		501,301
Distillers grains		62,698		6,077		-		-		-		68,775
Corn oil		14,308		5,509		-		-		-		19,817
Grain		2		19,056		-		-		-		19,058
Other		945		3,659		-		-		-		4,604
Intersegment revenues		-		7,293		-		-		(7,293)		-
Total revenues from contracts accounted for as derivatives		467,800		153,048		-		-		(7,293)		613,555
Leasing revenues under ASC 842 ⁽²⁾:		-		-		-		16,833		(16,790)		43
Total Revenues	$	484,406	$	153,943	$	-	$	20,154	$	(26,153)	$	632,350


	Nine Months Ended September 30, 2019
	Ethanol Production		Agribusiness & Energy Services		Food & Ingredients		Partnership		Eliminations		Total
Revenues:
Revenues from contracts with customers under ASC 606:
Ethanol	$	620	$	-	$	-	$	-	$	-	$	620
Distillers grains		47,860		-		-		-		-		47,860
Service revenues		-		-		-		4,966		-		4,966
Other		2,135		1,515		-		-		-		3,650
Intersegment revenues		75		-		-		5,267		(5,342)		-
Total revenues from contracts with customers		50,690		1,515		-		10,233		(5,342)		57,096
Revenues from contracts accounted for as derivatives under ASC 815 ⁽¹⁾:
Ethanol		946,390		324,756		-		-		-		1,271,146
Distillers grains		165,436		32,165		-		-		-		197,601
Corn oil		35,915		22,943		1,451		-		-		60,309
Grain		138		59,140		-		-		-		59,278
Other		7,613		48,168		-		-		-		55,781
Intersegment revenues		-		19,432		-		-		(19,432)		-
Total revenues from contracts accounted for as derivatives		1,155,492		506,604		1,451		-		(19,432)		1,644,115
Leasing revenues under ASC 840 ⁽²⁾:		-		-		-		51,833		(51,484)		349
Total Revenues	$	1,206,182	$	508,119	$	1,451	$	62,066	$	(76,258)	$	1,701,560

(1)Revenues from contracts accounted for as derivatives represent physically settled derivative sales that are outside the scope of ASC 606, where the company recognizes revenue when control of the inventory is transferred within the meaning of ASC 606 as required by ASC 610-20, Gains and Losses from Derecognition of Nonfinancial Assets.

(2)Leasing revenues do not represent revenues recognized from contracts with customers under ASC 606, and are accounted for under ASC 842, Leases.

Major Customers

Revenue from Customer A represented 10% of total revenues for the nine months ended September 30, 2020 and 10% and 11% of total revenues for the three and nine months ended September 30, 2019, respectively. Revenue from Customer B represented 11% and 10% of total revenues for the three and nine months ended September 30, 2019, respectively. Revenues from these customers are reported in the ethanol production segment.