Annual report pursuant to Section 13 and 15(d)

Reportable Segments and Geographic Information

v3.7.0.1
Reportable Segments and Geographic Information
12 Months Ended
Dec. 31, 2016
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 segment on an annual basis. During the fourth quarter of 2015, the Company determined that as activities surrounding its renewable chemicals business increase, it changed the composition of its operating segments from two reportable segments to three reportable segments by presenting Renewable Chemicals separate from Biomass-based diesel. The new reportable segments generally align the Company's external financial reporting segments with its new internal operating segments, which are based on its internal organizational structure, operating decisions, and performance assessment. There are no changes to the Company's assessments in 2016. As such, our reportable segments at December 31, 2016 include Biomass-based diesel, Services, Renewable Chemicals 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 and methanol 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 are recorded by the Services segment at cost.
The Renewable Chemicals segment consists of research and development activities involving the production of renewable chemicals, additional advanced biofuels and other products from the Company's proprietary microbial fermentation process and the operations of a demonstration scale facility located in Okeechobee, Florida. The Renewable Chemicals segment started to have research and development collaborative and initial product revenues in 2016.
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 for the results of operations for the years ended December 31, 2016, 2015 and 2014:
 
2016
 
2015
 
2014
Net sales:
 
 
 
 
 
Biomass-based Diesel (includes Petrotec's net sales of $171,358, $145,039, and $3,563, respectively)
$
1,952,361

 
$
1,326,452

 
$
1,264,850

Services
87,014

 
102,731

 
85,149

Renewable Chemicals
2,065

 

 

Corporate and other
106,572

 
68,984

 
11,940

Intersegment revenues
(106,780
)
 
(110,823
)
 
(88,108
)
 
$
2,041,232

 
$
1,387,344

 
$
1,273,831

Income (loss) before income taxes
 
 
 
 
 
Biomass-based diesel (includes Petrotec's income (loss) of $5,007, $(1,643), and $(337), respectively)
$
64,814

 
$
(100,152
)
 
$
104,136

Services
2,970

 
6,323

 
6,980

Renewable Chemicals
(19,787
)
 
(52,728
)
 
(12,252
)
Corporate and other
984

 
(13,854
)
 
(12,754
)
 
$
48,981

 
$
(160,411
)
 
$
86,110

Depreciation and amortization expense, net:
 
 
 
 
 
Biomass-based diesel (includes Petrotec's amounts of $2,849, $3,259, and $0, respectively)
$
29,018

 
$
22,799

 
$
13,497

Services
613

 
302

 
204

Renewable Chemicals
1,550

 
1,413

 
1,293

Corporate and other
1,696

 
1,362

 
802

 
$
32,877

 
$
25,876

 
$
15,796

Cash paid for purchases of property, plant and equipment:
 
 
 
 
 
Biomass-based diesel (includes Petrotec's amounts of $1,353, $1,816, and $0, respectively)
$
52,952

 
$
59,859

 
$
52,846

Services
4,731

 
1,510

 
643

Renewable Chemicals
473

 
672

 
532

Corporate and other
2,549

 
2,436

 
6,142

 
$
60,705

 
$
64,477

 
$
60,163

 
2016
 
2015
Goodwill:
 
 
 
Biomass-based diesel
$

 
$

Services
16,080

 
16,080

Renewable Chemicals

 

 
$
16,080

 
$
16,080

Assets:
 
 
 
Biomass-based diesel (including Petrotec's assets of $51,822 and $45,471)
$
1,026,349

 
$
1,048,923

Services
53,823

 
60,308

Renewable Chemicals
22,883

 
23,872

Corporate and other
299,825

 
308,782

Intersegment eliminations
(266,277
)
 
(218,265
)
 
$
1,136,603

 
$
1,223,620



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. Sales and long-lived assets of the Company's investment in Petrotec comprise substantially all of the amounts categorized as Foreign in the table below.
 
2016
 
2015
 
2014
Net sales:
 
 
 
 
 
United States
$
1,869,874

 
$
1,242,305

 
$
1,270,268

Foreign
171,358

 
145,039

 
3,563

 
$
2,041,232

 
$
1,387,344

 
$
1,273,831

 
 
 
 
 
2016
 
2015
Long-lived assets:
 
 
 
United States
$
580,868
 
 
$
553,987
 
Foreign
18,606
 
 
20,597
 
 
$
599,474
 
 
$
574,584