Equity Method Investments

6 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments.

As of June 30, 2016, the Company’s investments that are accounted for using the equity method of accounting consisted of the following: (1) 30 percent interest in ICP, which manufactures alcohol for fuel, industrial and beverage applications, and (2) 50 percent interest in D.M. Ingredients, GmbH, ("DMI"), which produced certain specialty starch and protein ingredients until June 30, 2015 (see DMI discussion below).

Realizability of DMI Investment. On December 29, 2014, the Company gave notice to DMI and to the Company's partner in DMI, Crespel and Dieters GmbH & Co. KG ("C&D"), to terminate the joint venture effective June 30, 2015. C&D also provided notice to terminate DMI effective June 30, 2015. On June 22, 2015, a termination agreement was executed by and between the Company, DMI, and C&D to dissolve DMI effective June 30, 2015. Additionally, on June 22, 2015 a termination agreement was executed by and between the Company and DMI to terminate their distribution agreement effective June 29, 2015. Under German law, commencing on June 30, 2015, normal operations for DMI ceased and a one-year winding down process began once the registration of resolutions, appointment of liquidators, inventory count, and publication of the notice to potential creditors was complete, which occurred on October 29, 2015. On or after October 29, 2016, the remaining liquidating proceeds will be disbursed.

Summary Financial Information (unaudited). Condensed financial information related to the Company’s non-consolidated equity method investment in ICP is shown below.



	Quarter Ended				Year to Date Ended
	June 30, 2016		June 30, 2015		June 30, 2016		June 30, 2015
ICP’s Operating results:
Net sales ^(a)	$	40,576	$	48,371	$	90,185	$	87,969
Cost of sales and expenses ^(b)	36,980		37,609		84,866		72,779
Net income	$	3,596	$	10,762	$	5,319	$	15,190


^(a)	Includes related party sales to MGPI of $6,698 and $11,803 for the quarters ended June 30, 2016 and 2015, respectively. Includes related party sales to MGPI of $12,939 and $22,442 for the year to date periods ended June 30, 2016 and 2015, respectively.


^(b)	Includes depreciation and amortization of $747 and $662, and business interruption insurance proceeds of $0 and $4,112, for the quarters ended June 30, 2016 and 2015, respectively. Includes depreciation and amortization of $1,482 and $1,325, and business interruption insurance proceeds of $0 and $4,112, for the year to date periods ended June 30, 2016 and 2015, respectively.

The Company’s equity method investment earnings (losses) from joint ventures, based on unaudited financial statements, is as follows:



	Quarter Ended						Year to Date Ended
	June 30, 2016		June 30, 2015				June 30, 2016		June 30, 2015
ICP (30% interest)	$	1,079	$	3,229			$	1,596	$	4,558
DMI (50% interest)	—		(133		)	^(a)	—		(110		)	^(a)
	$	1,079	$	3,096			$	1,596	$	4,448

^(a) Includes $81 of pre-tax foreign currency translation adjustment.

The Company’s investment in joint ventures is as follows:



	June 30, 2016			December 31, 2015
ICP (30% interest)	$	16,472	^(a)	$	18,179
DMI (50% interest)	384			384
	$	16,856		$	18,563


^(a)	During the year to date period ended June 30, 2016, the Company received a $3,300 cash distribution from ICP, which reduced the Company's investment amount in ICP.