3. Segments

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segments

The Company reports its financial and operating performance in two segments: (1) ethanol production, which includes the production and sale of ethanol, specialty alcohols and co-products, with all of the Company’s production facilities aggregated, and (2) marketing and distribution, which includes marketing and merchant trading for Company-produced ethanol, specialty alcohols and co-products and third-party 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,
	2017			2016			2017			2016
Net Sales
Ethanol Production:
Net sales to external customers	$	304,812		$	266,299		$	804,012		$	767,171
Intersegment net sales		639			306			1,138			829
Total ethanol production net sales	$	305,451		$	266,605		$	805,150		$	768,000
Marketing and distribution:
Net sales to external customers	$	140,630		$	151,507		$	432,972		$	415,868
Intersegment net sales		2,334			2,018			6,135			5,861
Total marketing and distribution net sales		142,964			153,525			439,107			421,729
Intersegment eliminations		(2,973	)		(2,324	)		(7,273	)		(6,690	)
Net sales as reported	$	445,442		$	417,806		$	1,236,984		$	1,183,039

Cost of goods sold:
Ethanol production	$	292,743		$	262,964		$	797,277		$	759,210
Marketing and distribution		142,303			153,406			437,110			412,225
Intersegment eliminations		(1,669	)		(4,928	)		(5,348	)		(13,533	)
Cost of goods sold as reported	$	433,377		$	411,442		$	1,229,039		$	1,157,902

Income (loss) before provision for income taxes:
Ethanol production	$	2,638		$	(2,903	)	$	(15,981	)	$	(19,171	)
Marketing and distribution		(757	)		(1,524	)		(2,043	)		4,654
Corporate activities		(2,422	)		909			(5,940	)		2,614
	$	(541	)	$	(3,518	)	$	(23,964	)	$	(11,903	)
Depreciation and amortization:
Ethanol production	$	9,841		$	8,631		$	27,703		$	25,839
Marketing and distribution		–			–			–			3
Corporate activities		238			226			783			684
	$	10,079		$	8,857		$	28,486		$	26,526
Interest expense:
Ethanol production	$	1,850		$	3,521		$	4,061		$	15,600
Marketing and distribution		342			353			952			1,043
Corporate activities		1,634			–			4,144			–
	$	3,826		$	3,874		$	9,157		$	16,643

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

	September 30, 2017		December 31, 2016
Total assets:
Ethanol production	$	596,928	$	542,688
Marketing and distribution		129,294		146,356
Corporate assets		4,428		19,194
	$	730,650	$	708,238