Segments.

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SEGMENTS.

3. SEGMENTS.

The Company reports its financial and operating performance in two segments: (1) production, which includes the production and sale of alcohols and essential ingredients, with all of the Company’s production distilleries aggregated, and (2) marketing and distribution, which includes marketing and merchant trading for Company-produced products as well as third-party fuel-grade ethanol.

The following tables set forth certain financial data for the Company’s operating segments (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Net Sales
Production, recorded as gross:
Alcohol sales	$	89,796		$	212,897		$	379,785		$	586,680
Other product sales		30,549			65,693			134,678			199,177
Intersegment sales		451			403			1,548			1,187
Total production sales		120,796			278,993			516,011			787,044
Marketing and distribution:
Alcohol sales, gross	$	84,000		$	86,124		$	212,625		$	280,032
Alcohol sales, net		382			446			1,117			1,375
Intersegment sales		698			2,079			3,483			5,839
Total marketing and distribution sales		85,080			88,649			217,225			287,246
Intersegment eliminations		(1,149	)		(2,482	)		(5,031	)		(7,026	)
Net sales as reported	$	204,727		$	365,160		$	728,205		$	1,067,264
Cost of goods sold:
Production	$	100,365		$	294,888		$	483,223		$	810,670
Marketing and distribution		84,581			87,976			210,792			277,545
Intersegment eliminations		(1,149	)		(2,888	)		(5,032	)		(7,817	)
Cost of goods sold as reported	$	183,797		$	379,976		$	688,983		$	1,080,398
Income (loss) before benefit for income taxes:
Production	$	24,976		$	(25,999	)	$	17,757		$	(50,682	)
Marketing and distribution		(865	)		(998	)		1,740			4,991
Corporate activities		(8,896	)		(2,076	)		(16,584	)		(5,833	)
	$	15,215		$	(29,073	)	$	2,913		$	(51,524	)
Depreciation and amortization:
Production	$	8,620		$	11,833		$	26,558		$	35,390
Corporate activities		76			195			297			554
	$	8,696		$	12,028		$	26,855		$	35,944
Interest expense:
Production	$	1,383		$	1,969		$	5,121		$	5,724
Marketing and distribution		335			929			1,275			2,291
Corporate activities		2,481			2,265			7,757			6,999
	$	4,199		$	5,163		$	14,153		$	15,014

The following table sets forth the Company’s total assets by operating segment (in thousands): 

	September 30, 2020		December 31, 2019
Total assets:
Production	$	403,358	$	492,060
Marketing and distribution		69,174		106,863
Corporate assets		16,930		13,572
	$	489,462	$	612,495