Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2016

Company's investment balance in each of its equity method investees by entity

The following table presents the Company’s investment balance in each of its equity method investees by entity:



(in thousands)	September 30, 2016		December 31, 2015		September 30, 2015
The Andersons Albion Ethanol LLC	$	36,661	$	32,871	$	31,409
The Andersons Clymers Ethanol LLC	21,340		29,278		31,151
The Andersons Marathon Ethanol LLC	23,812		31,255		30,066
Lansing Trade Group, LLC	91,573		101,531		84,081
Thompsons Limited (a)	47,494		43,964		43,803
Other	4,234		3,208		2,697
Total	$	225,114	$	242,107	$	223,207

(a) Thompsons Limited and related U.S. operating company held by joint ventures

the third quarter of 2016, The Andersons Albion Ethanol LLC, The Andersons Clymers Ethanol LLC, The Andersons Marathon LLC, Lansing Trade Group, and Thompsons Ltd. qualified as significant equity investees of the Company under the income test. The following table presents combined summarized unaudited financial information of these investments for the three and nine months ended September 30, 2016 and 2015:



(in thousands)	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2016		2015		2016			2015
Revenues	$	1,646,697	$	2,250,326	$	4,676,583		$	5,129,523
Gross profit	50,141		73,881		127,963			211,470
Income (loss) from continuing operations	18,965		18,008		1,428			65,645
Net income (loss)	17,217		17,310		(2,924		)	59,637
Net income (loss) attributable to companies	17,752		15,990		(1,347		)	57,787

Income (loss) earned from the Company's equity method investments by entity

The following table summarizes income (loss) earned from the Company’s equity method investments by entity:



		Three months ended September 30,						Nine months ended September 30,
(in thousands)	% Ownership at September 30, 2016	2016			2015			2016			2015
The Andersons Albion Ethanol LLC	55%	$	2,528		$	665		$	3,857		$	4,080
The Andersons Clymers Ethanol LLC	38%	2,706			1,454			3,516			4,922
The Andersons Marathon Ethanol LLC	50%	2,655			385			2,557			3,530
Lansing Trade Group, LLC	33% (a)	689			1,382			(7,412		)	9,290
Thompsons Limited (b)	50%	(156		)	17			1,271			1,385
Other	5% - 34%	—			(58		)	—			88
Total		$	8,422		$	3,845		$	3,789		$	23,295

(a) This does not consider restricted management units which once vested will reduce the ownership percentage by approximately 0.8%

(b) Thompsons Limited and related U.S. operating company held by joint ventures

Schedule of aggregate summarized financial information of subsidiaries

The following table sets forth the related party transactions entered into for the time periods presented:



	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2016		2015		2016		2015
Sales revenues	$	177,724	$	230,409	$	549,426	$	577,133
Service fee revenues (a)	3,800		3,610		13,290		14,865
Purchases of product	128,081		123,051		346,590		339,159
Lease income (b)	1,300		1,542		4,662		4,787
Labor and benefits reimbursement (c)	2,862		2,950		9,702		8,761
Other expenses (d)	—		269		149		827


(a)	Service fee revenues include management fees, corn origination fees, ethanol and distillers dried grains (DDG) marketing fees, and other commissions.


(b)	Lease income includes the lease of the Company’s Albion, Michigan and Clymers, Indiana grain facilities as well as certain railcars to the various ethanol LLCs and IANR.


(c)	The Company provides all operational labor to the unconsolidated ethanol LLCs and charges them an amount equal to the Company’s costs of the related services.


(d)	Other expenses include payments to IANR for repair facility rent and use of their railroad reporting mark, payment to LTG for the lease of railcars and other various expenses.



(in thousands)	September 30, 2016		December 31, 2015		September 30, 2015
Accounts receivable (e)	$	18,028	$	13,362	$	19,799
Accounts payable (f)	15,352		13,784		15,929


(e)	Accounts receivable represents amounts due from related parties for sales of corn, leasing revenue and service fees.


(f)	Accounts payable represents amounts due to related parties for purchases of ethanol and other various items.