Reportable Segments and Geographic Information

3 Months Ended

Mar. 31, 2020

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. The Company's reportable segments at March 31, 2020 and for the year ended December 31, 2019 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 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 March 31, 2020			Three Months Ended March 31, 2019
Net sales from continuing operations:
Biomass-based Diesel	$	455,901		$	395,851
Services	19,533			19,583
Corporate and Other	44,336			83,903
Intersegment revenues	(45,101		)	(21,128		)
	$	474,669		$	478,209
Income (loss) from continuing operations before income taxes:
Biomass-based Diesel	$	78,633		$	(40,278	)
Services	(778		)	(869		)
Corporate and Other	329			(670		)
	$	78,184		$	(41,817	)
Depreciation and amortization expense, net:
Biomass-based Diesel	$	12,038		$	12,024
Services	742			630
Corporate and Other	814			886
	$	13,594		$	13,540
Cash paid for purchases of property, plant and equipment:
Biomass-based Diesel	$	8,608		$	7,688
Services	328			547
Corporate and Other	94			—
	$	9,030		$	8,235



	March 31, 2020			December 31, 2019
Goodwill:
Services	$	16,080		$	16,080

Assets:
Biomass-based Diesel	$	1,820,860		$	1,711,870
Services	54,790			69,144
Corporate and Other	401,128			425,602
Intersegment eliminations	(386,439		)	(421,267		)
	$	1,890,339		$	1,785,349

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 March 31, 2020		Three Months Ended March 31, 2019
Net revenues:
United States	$	387,651	$	438,605
International	87,018		39,604
	$	474,669	$	478,209



	March 31, 2020		December 31, 2019
Long-lived assets:
United States	$	569,961	$	562,165
International	22,990		22,412
	$	592,951	$	584,577