Revenue

Adoption of Topic 606, Revenue from Contracts with Customers

On January 1, 2018, the Company adopted ASU 2014-09 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Financial results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company's historic accounting under Accounting Standards Codification 605, Revenue Recognition ("ASC 605"). The Company has completed its evaluation of the impact of ASU 2014-09 and concluded that there is no impact to the financial statements as a result of its adoption. The Company recorded no adjustment to opening retained earnings as of January 1, 2018 related to the transition from ASC 605 to ASU 2014-09 and there are no differences to disclose to reconcile financial statement activity as reported under ASU 2014-09 to ASC 605 for the quarter and year to date ended June 30, 2018.

Disaggregation of Revenue.

The following table presents the Company's revenues disaggregated by segment and major products and services.



	NET SALES				NET SALES
	Quarter Ended June 30,				Year to Date Ended June 30,
	2018		2017^(a)		2018		2017^(a)
Distillery Products
Premium beverage alcohol	$	42,200	$	42,287	$	86,271	$	87,926
Industrial alcohol	19,295		19,342		38,639		38,465
Food grade alcohol	$	61,495	$	61,629	$	124,910	$	126,391
Fuel grade alcohol	1,567		1,767		3,430		3,409
Distillers feed and related co-products	6,663		4,732		12,887		9,654
Warehouse services	2,927		2,571		5,802		5,194
Total distillery products	$	72,652	$	70,699	$	147,029	$	144,648

Ingredient Solutions
Specialty wheat starches	$	7,339	$	7,411	$	14,140	$	13,818
Specialty wheat proteins	6,008		5,224		10,744		9,603
Commodity wheat starch	2,090		2,266		4,132		4,354
Commodity wheat protein	163		153		163		499
Total ingredient solutions	$	15,600	$	15,054	$	29,179	$	28,274

Total net sales	$	88,252	$	85,753	$	176,208	$	172,922

^(a) As noted above, prior period amounts were not adjusted upon adoption of Topic 606.

The following table presents the Company's revenues disaggregated by segment and timing of revenue recognition.



	NET SALES				NET SALES
	Quarter Ended June 30,				Year to Date Ended June 30,
	2018		2017^(a)		2018		2017^(a)
Distillery Products
Products transferred at a point in time	$	69,725	$	68,128	$	141,227	$	139,454
Services transferred over time	2,927		2,571		5,802		5,194
Total distillery products	$	72,652	$	70,699	$	147,029	$	144,648

Ingredient Solutions
Products transferred at a point in time	$	15,600	$	15,054	$	29,179	$	28,274

Total net sales	$	88,252	$	85,753	$	176,208	$	172,922

^(a) As noted above, prior period amounts were not adjusted upon adoption of Topic 606.

The Company generates revenues from the distillery products segment by the sale of products and by providing warehouse services related to the storage and aging of customer products. The Company generates revenues from the ingredient solutions segment by the sale of products.

Contracts with customers in both segments include a single performance obligation (either the sale of products or the provision of warehouse services). Certain customers may receive volume rebates or discounts, which are accounted for as variable consideration. The Company estimates these amounts based on the expected amount to be provided to customers and reduces revenues recognized. The Company believes there will be no significant changes to the estimates of variable consideration.