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Segments | 12 Months Ended
--- | ---
Dec. 31, 2021
Segment Reporting [Abstract] |
SEGMENTS |
| 4. | SEGMENTS.
The Company reports its financial and operating performance in three segments: (1) marketing and distribution, which includes marketing and merchant trading for Company-produced alcohols and essential ingredients on an aggregated basis, and third-party fuel-grade ethanol (2) Pekin Campus production, which includes the production and sale of alcohols and essential ingredients produced at the Company’s Pekin, Illinois campus, and (3) Other production, which includes the production and sale of fuel-grade ethanol and essential ingredients produced at all of the Company’s other production facilities on an aggregated basis, none of which are individually so significant to be considered a reportable segment. Income before provision for income taxes includes management fees charged by Alto Ingredients to the segments. The Pekin Campus production segment incurred $4,344,000, $4,344,000 and $4,014,000 in management fees for the years ended December 31, 2021, 2020 and 2019, respectively. The marketing and distribution segment incurred $3,480,000 in management fees for each of the years ended December 31, 2021, 2020 and 2019, respectively. The Other production segment incurred $1,950,000, $3,893,000 and $5,188,000 in management fees for the years ended December 31, 2021, 2020 and 2019, respectively. Corporate activities include selling, general and administrative expenses, consisting primarily of corporate employee compensation, professional fees and overhead costs not directly related to a specific operating segment. During the normal course of business, the segments do business with each other. The preponderance of this activity occurs when the Company’s marketing segment markets alcohol produced by the production segments for a marketing fee, as discussed in Note 3. These intersegment activities are considered arms’-length transactions. Consequently, although these transactions impact segment performance, they do not impact the Company’s consolidated results since all revenues and corresponding costs are eliminated in consolidation. For the year ended December 31, 2021, capital expenditures incurred by the Pekin Campus segment and the Other production segment were approximately $14.3 million and $2.1 million, respectively. For the years ended December 31, 2020 and 2019, capital expenditures were substantially all incurred at the Company’s Pekin Campus production segment. The following tables set forth certain financial data for the Company’s operating segments (in thousands):
|  | Years Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Net Sales |  |  |  |  |  |  |  |  |
Pekin Campus production, recorded as gross: |  |  |  |  |  |  |  |  |
Alcohol sales |  | $ | 498,195 |  |  | $ | 330,432 |  |  | $ | 343,610 |
Essential ingredient sales |  |  | 189,535 |  |  |  | 130,270 |  |  |  | 138,987 |
Intersegment sales |  |  | 1,193 |  |  |  | 645 |  |  |  | 1,110 |
Total Pekin Campus sales |  |  | 688,923 |  |  |  | 461,347 |  |  |  | 483,707 |
Marketing and distribution: |  |  |  |  |  |  |  |  |  |  |  |
Alcohol sales, gross |  | $ | 379,422 |  |  | $ | 256,209 |  |  | $ | 355,101 |
Alcohol sales, net |  |  | 1,753 |  |  |  | 1,529 |  |  |  | 1,831 |
Intersegment sales |  |  | 10,061 |  |  |  | 9,648 |  |  |  | 18,219 |
Total marketing and distribution sales |  |  | 391,236 |  |  |  | 267,386 |  |  |  | 375,151 |
Other Production, recorded as gross: |  |  |  |  |  |  |  |  |  |  |  |
Alcohol sales |  | $ | 107,931 |  |  | $ | 137,703 |  |  | $ | 455,343 |
Essential ingredient sales |  |  | 31,056 |  |  |  | 40,880 |  |  |  | 130,009 |
Intersegment sales |  |  | 964 |  |  |  | 1,309 |  |  |  | 509 |
Total Other production sales |  |  | 139,951 |  |  |  | 179,892 |  |  |  | 585,861 |
Intersegment eliminations |  |  | (12,218 | ) |  |  | (11,602 | ) |  |  | (19,838 | )
Net sales as reported |  | $ | 1,207,892 |  |  | $ | 897,023 |  |  | $ | 1,424,881 |
Cost of goods sold: |  |  |  |  |  |  |  |  |
Pekin Campus production |  | $ | 638,371 |  |  | $ | 389,125 |  |  | $ | 481,262 |
Marketing and distribution |  |  | 371,371 |  |  |  | 253,465 |  |  |  | 347,185 |
Other production |  |  | 136,401 |  |  |  | 206,412 |  |  |  | 612,040 |
Intersegment eliminations |  |  | (6,035 | ) |  |  | (4,838 | ) |  |  | (5,668 | )
Cost of goods sold as reported |  | $ | 1,140,108 |  |  | $ | 844,164 |  |  | $ | 1,434,819 |
Income (loss) before provision (benefit) for income taxes: |  |  |  |  |  |  |  |  |
Pekin Campus production |  | $ | 41,622 |  |  | $ | 53,898 |  |  | $ | (21,441 | )
Marketing and distribution |  |  | 11,756 |  |  |  | 4,889 |  |  |  | 12,533 |
Other production |  |  | (3,762 | ) |  |  | (54,677 | ) |  |  | (77,019 | )
Corporate activities |  |  | (2,065 | ) |  |  | (21,409 | ) |  |  | (15,375 | )
|  | $ | 47,551 |  |  | $ | (17,299 | ) |  | $ | (101,302 | )
Depreciation expense: |  |  |  |  |  |  |  |  |  |  |  |
Pekin Campus production |  | $ | 17,352 |  |  | $ | 17,450 |  |  | $ | 17,535 |
Other production |  |  | 5,890 |  |  |  | 12,691 |  |  |  | 30,107 |
Corporate activities |  |  | 50 |  |  |  | 127 |  |  |  | 267 |
|  | $ | 23,292 |  |  | $ | 30,268 |  |  | $ | 47,909 |
Interest expense: |  |  |  |  |  |  |  |  |
Pekin Campus production |  | $ | 756 |  |  | $ | 6,038 |  |  | $ | 7,556 |
Marketing and distribution |  |  | 963 |  |  |  | 1,574 |  |  |  | 3,053 |
Other production |  |  | 167 |  |  |  | 334 |  |  |  | 13 |
Corporate activities |  |  | 1,701 |  |  |  | 9,997 |  |  |  | 9,584 |
|  | $ | 3,587 |  |  | $ | 17,943 |  |  | $ | 20,206 |
The following table sets forth the Company’s total assets by operating segment (in thousands):
|  | December 31, 2021 |  |  | December 31, 2020 |
Total assets: |  |  |  |  |  |
Pekin Campus production |  | $ | 266,197 |  |  | $ | 234,439 |
Marketing and distribution |  |  | 130,302 |  |  |  | 89,337 |
Other production |  |  | 57,046 |  |  |  | 102,409 |
Corporate assets |  |  | 31,408 |  |  |  | 50,633 |
|  | $ | 484,953 |  |  | $ | 476,818 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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