Revenue

Adoption of Topic 606, Revenue from Contracts with Customers

On January 1, 2018, the Company adopted Topic 606, 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 Topic 606 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 Topic 606 and there are no differences to disclose to reconcile financial statement activity as reported under Topic 606 to ASC 605 for the quarter and year to date ended September 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 September 30,				Year to Date Ended September 30,
	2018		2017^(a)		2018		2017^(a)
Distillery Products
Premium beverage alcohol	$	46,864	$	43,941	$	133,135	$	131,868
Industrial alcohol	20,661		19,310		59,300		57,775
Food grade alcohol	67,525		63,251		192,435		189,643
Fuel grade alcohol	1,576		1,458		5,006		4,867
Distillers feed and related co-products	5,898		4,860		18,785		14,514
Warehouse services	3,337		2,766		9,139		7,960
Total distillery products	$	78,336	$	72,335	$	225,365	$	216,984

Ingredient Solutions
Specialty wheat starches	$	7,030	$	7,008	$	21,170	$	20,826
Specialty wheat proteins	5,486		4,939		16,230		14,541
Commodity wheat starch	2,793		1,948		6,926		6,302
Commodity wheat protein	1,386		103		1,548		602
Total ingredient solutions	$	16,695	$	13,998	$	45,874	$	42,271

Total net sales	$	95,031	$	86,333	$	271,239	$	259,255

^(a) 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 September 30,				Year to Date Ended September 30,
	2018		2017^(a)		2018		2017^(a)
Distillery Products
Products transferred at a point in time	$	74,999	$	69,569	$	216,226	$	209,024
Services transferred over time	3,337		2,766		9,139		7,960
Total distillery products	$	78,336	$	72,335	$	225,365	$	216,984

Ingredient Solutions
Products transferred at a point in time	$	16,695	$	13,998	$	45,874	$	42,271

Total net sales	$	95,031	$	86,333	$	271,239	$	259,255

^(a) 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.