Reportable Segments and Geographic Information

12 Months Ended

Dec. 31, 2019

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. 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, the Company's Board of Directors authorized it to pursue a plan to sell REG Life Sciences, which primarily represented the Renewable Chemicals reportable segment. This has resulted in the Company's reportable segments being 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, the operations of a fermentation facility located in Okeechobee, Florida 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:



	2019			2018			2017
Net sales from continuing operations:
Biomass-based Diesel	$	2,380,736		$	2,157,897		$	2,039,982
Services	99,086			93,347			103,215
Corporate and other	270,326			249,152			213,500
Intersegment revenues	(108,755		)	(117,409		)	(202,042		)
	$	2,641,393		$	2,382,987		$	2,154,655
Income (loss) from continuing operations before income taxes
Biomass-based diesel	$	388,484		$	314,727		$	(63,925	)
Services	6,092			4,863			2,899
Corporate and other	(5,415		)	(10,091		)	(35,743		)
	$	389,161		$	309,499		$	(96,769	)
Depreciation and amortization expense, net:
Biomass-based diesel	$	54,513		$	32,558		$	31,011
Services	2,479			1,658			1,092
Corporate and other	1,763			3,026			3,265
	$	58,755		$	37,242		$	35,368
Cash paid for purchases of property, plant and equipment:
Biomass-based diesel	$	40,567		$	41,906		$	60,734
Services	1,840			4,300			3,826
Corporate and other	111			247			2,997
	$	42,518		$	46,453		$	67,557



	2019			2018
Goodwill:
Services	$	16,080		$	16,080

Assets:
Biomass-based diesel	$	1,711,870		$	914,843
Services	69,144			63,720
Corporate and other	425,602			379,658
Intersegment eliminations	(421,267		)	(254,375		)
Assets held for sale	—			3,250
	$	1,785,349		$	1,107,096

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.



	2019		2018		2017
Revenues:
United States	$	2,382,901	$	2,207,286	$	1,957,715
International	258,492		175,701		196,940
	$	2,641,393	$	2,382,987	$	2,154,655



	2019		2018
Property, Plant and Equipment:
United States	$	562,165	$	571,045
International	22,412		19,678
	$	584,577	$	590,723