

NOTE 3:	EQUITY METHOD INVESTMENTS

As of December 31, 2014, the Company’s investments accounted for on the equity method of accounting consist of the following: (1) 30 percent interest in ICP, which manufactures alcohol for fuel, industrial and beverage applications, and (2) 50 percent interest in DMI, which produces certain specialty starch and protein ingredients.

ICP Investment

ICP's Limited Liability Company Agreement generally allocates profits, losses and distributions of cash of ICP based on the percentage of a member's capital contributions to ICP relative to total capital contributions of all members ("Percentage Interest") to ICP, of which the Company has 30 percent and its joint venture partner, ICP Holdings, has 70 percent. That agreement grants the right to either member to elect (the "Electing Member") to shut down the Pekin facility ("Shutdown Election") if ICP operates at an EBITDA (as defined in the agreement) loss greater than or equal to $500 in any quarter, subject to the right of the other member (the "Objecting Member") to override that election. If the Objecting Member overrides the election, then EBITDA loss and EBITDA profit for each subsequent quarter are allocated 80 percent to the Objecting Member and 20 percent to the Electing Member until the end of the applicable quarter in which the Electing Member withdraws its Shutdown Election and thereafter allocations revert to a 70 percent/30 percent split (subject to a catch-up allocation of 80 percent of EBITDA profits to the Objecting Member until it equals the amount of EBITDA loss allocated to such member on an 80 percent/20 percent basis). ICP experienced an EBITDA loss in excess of $500 for the quarter ended March 31, 2013, which was one factor that prompted the Company to deliver notice of its Shutdown Election on April 18, 2013. However, the Company withdrew its Shutdown Election on March 31, 2014 (thereby causing the allocation of profits and losses to revert to 30 percent to the Company and 70 percent to ICP Holdings as of April 1, 2014) based partially on the strong financial results ICP generated during the period ended March 31, 2014.

During the quarter ended June 30, 2014, ICP's financial results and liquidity were significantly improved and the Company learned that ICP may consider making a cash distribution from earnings, or payment, to its members and that ICP Holdings advocated such a distribution of cash. Based on these changes in facts and circumstances, management reassessed the most likely events that would result in a recovery of its investment in ICP and determined that such a recovery would likely occur through cash distributions from ICP rather than through a sale or liquidation of ICP. As a result of this reassessment, during the quarter ended June 30, 2014, the Company remeasured its cumulative equity in the undistributed earnings of ICP using the allocation that applies to a cash distribution to members (as further disclosed in the Company's report on Form 10-Q for the quarter ended June 30, 2014). The cumulative effect of this change in estimate resulted in a decrease in equity method investment earnings of ICP of $1,882 for the year ended December 31, 2014; a decrease in the earnings per share of $0.10 per share for the year ended December 31, 2014; and a decrease in the related equity method investment in ICP at December 31, 2014, of $1,882.

On December 3, 2014, the ICP advisory board recommended payment of a cash distribution to its members. The Company received its portion of the distribution, $4,835, on December 4, 2014.

On July 23, 2014 ICP's alcohol production was interrupted resulting in inconsequential damage to equipment. Production was restarted on a limited basis on August 1, 2014, and ICP was back to normal production rates on or about August 14, 2014. Insurance recoveries will be recognized in ICP's results in a future period and when all contingencies to the insurance claims have been resolved and settlement has been reached with the insurer.

ICP’s revolving credit agreement with an affiliate of SEACOR has been amended and restated extending the maturity to January 1, 2016. The Company has no further funding requirement to ICP.

DMI Investment

On December 29, 2014, the Company gave notice to DMI and to its partner in DMI, Crespel and Dieters GmbH & Co. KG ("C&D"), to terminate the joint venture effective June 30, 2015. Under German law, commencing on June 30, 2015, normal operations for DMI will cease and a one-year winding up process will begin.

Related Party Transactions

See Note 14: Related Party Transactions for discussion of related party transactions.

Realizability of investments

No other than temporary impairments were recorded during the year ended December 31, 2014 and 2013 for the Company's equity method investments.

Summary Financial Information

Condensed financial information of the Company’s equity method investment in ICP as of December 31, 2014 is shown below:



	Year Ended December 31,
ICP’s Operating results:	2014			2013
Net sales^(a)	$	236,486		$	193,682
Cost of sales and expenses^(b)	(196,551		)	(194,519		)
Net income (loss)	$	39,935		$	(837	)


^(a)	Includes related party sales to MGPI of $34,615 and $7,736 for the years ended December 31, 2014 and 2013, respectively.


^(b)	Includes depreciation and amortization of $2,847 and $4,523 for the years ended December 31, 2014 and 2013, respectively.

The Company’s equity method investment earnings (losses) are as follows:



	Year Ended December 31,
	2014		2013
ICP (30% interest)	$	10,098	$	(251	)
DMI (50% interest)	39		47
Total	$	10,137	$	(204	)

The Company’s equity method investments are as follows:



	December 31,
	2014		2013
ICP (30% interest) ^(a)	$	11,924	$	6,653
DMI (50% interest)	449		470
Total	$	12,373	$	7,123


^(a)	During the year ended December 31, 2014, the Company received a $4,835 cash distribution from ICP, which reduced the Company's investment in ICP.