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Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Information [Abstract]  
Segment Information 7. SEGMENT INFORMATION

The company reports the financial and operating performance for the following four operating segments: (1) ethanol production, which includes the production of ethanol, including industrial-grade alcohol, distillers grains, Ultra-High Protein and corn oil, (2) agribusiness and energy services, which includes grain handling and storage, commodity marketing and merchant trading for company-produced and third-party ethanol, distillers grains, corn oil, natural gas and other commodities, (3) food and ingredients, which includes food-grade corn oil and included vinegar production until the sale of Fleischmann’s Vinegar during the fourth quarter of 2018 and (4) partnership, which includes fuel storage and transportation services.

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 ethanol production 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, excluding amounts related to discontinued operations (in thousands):

Year Ended December 31,

2020

2019

2018

Revenues:

Ethanol production:

Revenues from external customers

$

1,502,481

$

1,700,615

$

2,120,475

Intersegment revenues

100

100

186

Total segment revenues

1,502,581

1,700,715

2,120,661

Agribusiness and energy services:

Revenues from external customers

416,403

708,316

735,855

Intersegment revenues

27,468

27,184

33,101

Total segment revenues

443,871

735,500

768,956

Food and ingredients:

Revenues from external customers

-

1,451

121,121

Intersegment revenues

-

-

-

Total segment revenues

-

1,451

121,121

Partnership:

Revenues from external customers

4,835

6,856

6,481

Intersegment revenues

78,510

75,531

94,267

Total segment revenues

83,345

82,387

100,748

Revenues including intersegment activity

2,029,797

2,520,053

3,111,486

Intersegment eliminations

(106,078)

(102,815)

(127,554)

Revenues as reported

$

1,923,719

$

2,417,238

$

2,983,932

Refer to Note 4 – Revenue, for further disaggregation of revenue by operating segment.

Year Ended December 31,

2020

2019

2018

Cost of goods sold:

Ethanol production

$

1,507,335

$

1,791,099

$

2,118,787

Agribusiness and energy services

409,407

696,226

717,772

Food and ingredients

-

1,526

94,679

Partnership

-

-

-

Intersegment eliminations

(104,579)

(103,904)

(124,270)

$

1,812,163

$

2,384,947

$

2,806,968

Year Ended December 31,

2020

2019

2018

Operating income (loss):

Ethanol production (1)

$

(129,618)

$

(178,575)

$

(111,823)

Agribusiness and energy services

15,773

22,777

29,076

Food and ingredients

-

(76)

14,354

Partnership

50,437

50,635

64,770

Intersegment eliminations

(1,400)

1,188

(3,110)

Corporate activities (2)

(57,888)

(38,519)

96,687

$

(122,696)

$

(142,570)

$

89,954

(1)Operating loss for the ethanol production segment for fiscal year 2020 includes a goodwill impairment charge of $24.1 million and $3.9 million pretax loss on sale of assets from the sale of the Hereford, Texas ethanol plant.

(2)Corporate activities for fiscal year 2020 include a goodwill impairment charge of $24.1 million, $18.5 million pretax loss on sale of assets from the sale of the Hereford, Texas ethanol plant and a $1.5 million net gain from sale of GPCC. Fiscal year 2018 includes a $150.4 million gain on the sale of the Bluffton, Indiana, Lakota, Iowa, and Riga, Michigan ethanol plants, as well as Fleischmann’s Vinegar during the fourth quarter.

Year Ended December 31,

2020

2019

2018

Depreciation and amortization:

Ethanol production

$

67,956

$

63,073

$

80,227

Agribusiness and energy services

2,512

2,222

2,470

Food and ingredients

-

-

7,553

Partnership

3,806

3,441

4,442

Corporate activities

3,970

3,391

3,566

$

78,244

$

72,127

$

98,258

Year Ended December 31,

2020

2019

2018

Capital expenditures:

Ethanol production

$

109,970

$

72,374

$

27,322

Agribusiness and energy services

1,195

2,251

277

Food and ingredients

-

-

9,025

Partnership

162

305

1,268

Corporate activities

472

1,542

451

$

111,799

$

76,472

$

38,343

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

Year Ended December 31,

2020

2019

Total assets (1):

Ethanol production

$

852,959

$

884,293

Agribusiness and energy services

426,724

410,400

Partnership

91,205

90,011

Corporate assets

228,074

324,280

Intersegment eliminations

(20,045)

(10,766)

$

1,578,917

$

1,698,218

(1)Asset balances by segment exclude intercompany payable and receivable balances.