Reportable Segments and Geographic Information

12 Months Ended

Dec. 31, 2017

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 2017 and 2016. As such, the Company's reportable segments at December 31, 2017 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, 2017, 2016 and 2015:

	2017			2016			2015
Net sales:
Biomass-based Diesel (includes REG Germany's net sales of $171,175, $171,358, and $145,039, respectively)	$	2,039,982		$	1,952,361		$	1,326,452
Services	103,215			87,014			102,731
Renewable Chemicals	4,531			2,065			—
Corporate and other	212,557			106,572			68,984
Intersegment revenues	(202,042		)	(106,780		)	(110,823		)
	$	2,158,243		$	2,041,232		$	1,387,344
Income (loss) before income taxes
Biomass-based diesel (includes REG Germany's income (loss) of ($7,544), $5,007, and $(1,643), respectively)	$	(63,925	)	$	64,814		$	(100,152	)
Services	2,899			2,970			6,323
Renewable Chemicals	(19,326		)	(19,787		)	(52,728		)
Corporate and other	(29,217		)	984			(13,854		)
	$	(109,569	)	$	48,981		$	(160,411	)
Depreciation and amortization expense, net:
Biomass-based diesel (includes REG Germany's amounts of $2,990, $2,849, and $3,259, respectively)	$	31,011		$	29,018		$	22,799
Services	1,092			613			302
Renewable Chemicals	2,666			1,550			1,413
Corporate and other	2,167			1,696			1,362
	$	36,936		$	32,877		$	25,876
Cash paid for purchases of property, plant and equipment:
Biomass-based diesel (includes REG Germany's amounts of $3,241, $1,353, and $1,816, respectively)	$	60,734		$	52,952		$	59,859
Services	3,826			4,731			1,510
Renewable Chemicals	14			473			672
Corporate and other	2,998			2,549			2,436
	$	67,572		$	60,705		$	64,477

	2017			2016
Goodwill:
Biomass-based diesel	$	—		$	—
Services	16,080			16,080
Renewable Chemicals	—			—
	$	16,080		$	16,080
Assets:
Biomass-based diesel (including REG Germany's assets of $55,761 and $51,822)	$	898,180		$	1,026,349
Services	55,581			53,823
Renewable Chemicals	21,168			22,883
Corporate and other	386,590			299,825
Intersegment eliminations	(355,923		)	(266,277		)
	$	1,005,596		$	1,136,603

Geographic Information:

The following geographic data include net sales attributed to the countries based on the location of the subsidiaries making the sale and long-lived assets based on physical location. Long-lived assets represent the net book value of property, plant and equipment.

	2017		2016			2015
Net sales:
United States	$	1,961,303	$	1,869,874		$	1,242,305
Germany	171,175		171,358		—	145,039
Other Foreign	25,765		—			—
Total Foreign	196,940		171,358			145,039
	$	2,158,243	$	2,041,232		$	1,387,344

	2017	2016
Long-lived assets:
United States	566,028	580,868
Germany	20,689	18,472
Other Foreign	680	134
Total Foreign	21,369	18,606
	587,397	599,474