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Note 9 - Segment Information
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

9)           Segment information


FutureFuel has two reportable segments organized along product lines – chemicals and biofuels.


Chemicals


FutureFuel’s chemicals segment manufactures diversified chemical products that are sold externally to third party customers.  This segment comprises two components: “custom manufacturing” (manufacturing chemicals for specific customers); and “performance chemicals” (multi-customer specialty chemicals).


Biofuels


FutureFuel’s biofuels business segment primarily manufactures and markets biodiesel.  Biodiesel revenues are generated through the sale of biodiesel to customers through FutureFuel’s distribution network at the Batesville Plant, through distribution facilities available at leased oil storage facilities, and through a network of remotely located tanks.  Results of the biofuels business segment also reflect the sale of biodiesel blends with petrodiesel, petrodiesel with no biodiesel added, RINs, biodiesel production byproducts and the purchase and sale of other petroleum products.


Summary of long-lived assets and revenues by geographic area


All of FutureFuel’s long-lived assets are located in the U.S.


Most of FutureFuel’s sales are transacted with title passing at the time of shipment from the Batesville Plant, although some sales are transacted based on title passing at the delivery point.  While many of FutureFuel’s chemicals are utilized to manufacture products that are shipped, further processed, and/or consumed throughout the world, the chemical products, with limited exceptions, generally leave the United States only after ownership has transferred from FutureFuel to the customer.  Rarely is FutureFuel the exporter of record, never is FutureFuel the importer of record into foreign countries, and FutureFuel is not always aware of the exact quantities of its products that are moved into foreign markets by its customers.  FutureFuel does track the addresses of its customers for invoicing purposes and uses this address to determine whether a particular sale is within or without the United States.  FutureFuel’s revenues attributable to the United States and foreign countries (based upon the billing addresses of its customers) were as follows:


Three Months Ended

 

United States

   

All Foreign

Countries

   

Total

 

June 30, 2014

  $ 66,461     $ 1,578     $ 68,039  

June 30, 2013

  $ 102,901     $ 3,162     $ 106,063  

Six Months Ended

 

United States

   

All Foreign

Countries

   

Total

 

June 30, 2014

  $ 146,389     $ 3,848     $ 150,236  

June 30, 2013

  $ 190,879     $ 7,349     $ 198,228  

For the three months ended June 30, 2014 and 2013, revenues from Mexico accounted for 2% and 3%, respectively, of total revenues. For the six months ended June 30, 2014 and 2013, revenues from Mexico accounted for 2% and 3%, respectively, of total revenues. Other than Mexico, revenues from a single foreign country during the three and six months ended June 30, 2014 and June 30, 2013 did not exceed 1% of total revenues.


Summary of business by segment


    For the three months ended
June 30,   		    For the six months ended
 June 30,   		 
   

2014

   

2013

   

2014

   

2013

 

Revenues

                               

Chemicals

  $ 32,609     $ 42,026     $ 62,885     $ 82,162  

Biofuels

    35,430       64,037       87,351       116,066  

Revenues

  $ 68,039     $ 106,063     $ 150,236     $ 198,228  
                                 

Segment gross profit

                               

Chemicals

  $ 7,131     $ 14,784     $ 16,165     $ 27,850  

Biofuels

    (553 )     12,842       15       21,157  

Segment gross margins

    6,578       27,626       16,180       49,007  

Corporate expenses

    (2,407 )     (2,651 )     (4,558 )     (5,082 )

Income before interest and taxes

    4,171       24,975       11,622       43,925  

Interest and other income

    4,516       3,719       7,003       4,931  

Interest and other expense

    (71 )     (40 )     (13 )     (46 )

Provision for income taxes

    (3,269 )     (10,498 )     (6,991 )     (16,604 )

Net income

  $ 5,347     $ 18,156     $ 11,621     $ 32,206  

Depreciation is allocated to segment costs of goods sold based on plant usage. The total assets and capital expenditures of FutureFuel have not been allocated to individual segments as large portions of these assets are shared to varying degrees by each segment, causing such an allocation to be of little value.