Operating Segments

3 Months Ended

Mar. 31, 2018

Operating Segments.

At March 31, 2018 and 2017, the Company had two segments: distillery products and ingredient solutions. The distillery products segment consists of food grade alcohol and distillery co-products, such as distillers feed (commonly called dried distillers grain in the industry) and fuel grade alcohol. The distillery products segment also includes warehouse services, including barrel put away, storage, retrieval, and blending services. Ingredient solutions consists of specialty starches and proteins and commodity starches and proteins.

Operating profit for each segment is based on net sales less identifiable operating expenses. Non-direct SG&A, interest expense, earnings from the Company's equity method investments until sold on July 3, 2017, other special charges, and other general miscellaneous expenses are excluded from segment operations and are classified as Corporate. Receivables, inventories, and equipment have been identified with the segments to which they relate. All other assets are considered as Corporate.



	Quarter Ended
	March 31, 2018			March 31, 2017
Net Sales to Customers
Distillery products	$	74,377		$	73,950
Ingredient solutions	13,579			13,219
Total	87,956			87,169
Gross Profit
Distillery products	15,870			16,615
Ingredient solutions	3,081			2,426
Total	18,951			19,041
Depreciation and Amortization
Distillery products	2,241			2,046
Ingredient solutions	434			408
Corporate	254			284
Total	2,929			2,738
Income (loss) before Income Taxes
Distillery products	14,177			15,518
Ingredient solutions	2,424			1,804
Corporate	(6,419		)	(5,790		)
Total	$	10,182		$	11,532

The following table allocates assets to each segment:



	As of March 31, 2018		As of December 31, 2017
Identifiable Assets
Distillery products	$	196,632	$	191,321
Ingredient solutions	30,904		28,950
Corporate	17,675		20,057
Total	$	245,211	$	240,328