Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments and Geographic Information

v3.19.2
Reportable Segments and Geographic Information
6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Reportable Segments and Geographic Information REPORTABLE SEGMENTS AND GEOGRAPHIC INFORMATION
The Company reports its reportable segments based on products and services provided to customers. The Company re-assesses its reportable segments on an annual basis. The Company's reportable segments generally align the Company's external financial reporting segments with its internal operating segments, which are based on its internal organizational structure, operating decisions and performance assessment. In the fourth quarter of 2018, concluding a comprehensive strategic assessment of the Company's Life Sciences business, which primarily represented the Renewable Chemicals reportable segment, the Company's Board of Directors authorized it to pursue a plan to sell REG Life Sciences. In May 2019, the Company entered into a sale and purchase agreement to sell REG Life Sciences core assets and business. As a result, the Company's reportable segments at June 30, 2019 and for the year ended December 31, 2018 are composed of Biomass-based Diesel, Services and Corporate and other activities. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. All prior period disclosures below have been recast to present results on a comparable basis.
The Biomass-based Diesel segment processes waste vegetable oils, animal fats, virgin vegetable oils and other feedstocks into biomass-based diesel. The Biomass-based Diesel segment also includes the Company’s purchases and resale of biomass-based diesel produced by third parties. Revenue is derived from the purchases and sales of biomass-based diesel, RINs and raw material feedstocks acquired from third parties, sales of biomass-based diesel produced under toll manufacturing arrangements with third party facilities, sales of processed biomass-based diesel from Company facilities, related by-products and renewable energy government incentive payments, in the U.S. and internationally.
The Services segment offers services for managing the construction of biomass-based diesel production facilities and managing ongoing operations of third-party plants and collects fees related to the services provided. The Company does not allocate items that are of a non-operating nature or corporate expenses to the business segments. Revenues from services provided to other segments are recorded by the Services segment at cost.
The Corporate and Other segment includes trading activities related to petroleum-based heating oil and diesel fuel as well as corporate activities, which consist of corporate office expenses such as compensation, benefits, occupancy and other administrative costs, including management service expenses. Corporate and Other also includes income/(expense) not associated with the reportable segments, such as corporate general and administrative expenses, shared service expenses, interest expense and interest income, all reflected on an accrual basis of accounting. In addition, Corporate and Other includes cash and other assets not associated with the reportable segments, including investments. Intersegment revenues are reported by the Services and Corporate and Other segments.
The following table represents the significant items by reportable segment:
   
Three Months 
 Ended 
 June 30, 
 2019
 
Three Months 
 Ended 
 June 30, 
 2018
 
Six Months 
 Ended 
 June 30, 
 2019
 
Six Months 
 Ended 
 June 30, 
 2018
Net sales from continuing operations:
   
 
   
 
   
 
   
Biomass-based Diesel
$
483,119

 
$
541,774

 
$
878,970

 
$
1,170,167

Services
24,139

 
17,523

 
43,722

 
52,738

Corporate and Other
78,184

 
53,173

 
162,087

 
127,716

Intersegment revenues
(24,799
)
 
(33,570
)
 
(45,927
)
 
(83,719
)
   
$
560,643

 
$
578,900

 
$
1,038,852

 
$
1,266,902

Income (loss) from continuing operations before income taxes:
   
 
   
 
   
 
   
Biomass-based Diesel
$
(58,647
)
 
$
32,394

 
$
(93,815
)
 
$
247,964

Services
1,252

 
(267
)
 
383

 
4,757

Corporate and Other
(330
)
 
750

 
(6,110
)
 
(3,205
)
   
$
(57,725
)
 
$
32,877

 
$
(99,542
)
 
$
249,516

Depreciation and amortization expense, net:
   
 
   
 
   
 
   
Biomass-based Diesel
$
13,525

 
$
8,161

 
$
25,532

 
$
16,199

Services
586

 
357

 
1,216

 
685

Corporate and Other
906

 
714

 
1,809

 
1,455

   
$
15,017

 
$
9,232

 
$
28,557

 
$
18,339

Cash paid for purchases of property, plant and equipment:
   
 
   
 
   
 
   
Biomass-based Diesel
$
9,425

 
$
11,447

 
$
17,113

 
$
27,049

Services
250

 
911

 
797

 
1,763

Corporate and Other
122

 

 
122

 
33

   
$
9,797

 
$
12,358

 
$
18,032

 
$
28,845


   
June 30, 2019
 
December 31, 2018
Goodwill:
   
 
   
Services
$
16,080

 
$
16,080

 
 
 
 
Assets:
   
 
   
Biomass-based Diesel
$
935,273

 
$
914,843

Services
58,870

 
63,720

Corporate and Other
364,916

 
379,658

Intersegment eliminations
(321,656
)
 
(254,375
)
Assets held for sale

 
3,250

   
$
1,037,403

 
$
1,107,096



Geographic Information:
The following geographic data include net sales attributed to the countries based on the location of the subsidiary making the sale and long-lived assets based on physical location. Long-lived assets represent the net book value of property, plant and equipment.
   
Three Months 
 Ended 
 June 30, 
 2019
 
Three Months 
 Ended 
 June 30, 
 2018
 
Six Months 
 Ended 
 June 30, 
 2019
 
Six Months 
 Ended 
 June 30, 
 2018
Net revenues:
   
 
   
 
   
 
   
United States
$
517,893

 
$
532,860

 
$
956,498

 
$
1,172,534

Germany
40,800

 
43,369

 
80,268

 
89,725

Other Foreign
1,950

 
2,671

 
2,086

 
4,643

Non-United States
42,750

 
46,040

 
82,354

 
94,368

 
$
560,643

 
$
578,900

 
$
1,038,852

 
$
1,266,902

   
June 30, 2019
 
December 31, 2018
Long-lived assets:
   
 
   
United States
$
572,427

 
$
571,045

Germany
18,667

 
18,972

Other Foreign
616

 
706

 
$
591,710

 
$
590,723