Segment Information

12 Months Ended

Dec. 31, 2018

The Company’s operations include four reportable business segments that are distinguished primarily on the basis of products and services offered. The Grain business includes grain merchandising, the operation of terminal grain elevator facilities and the investments in LTG and Thompsons Limited. The Ethanol business purchases and sells ethanol and also manages the ethanol production facilities organized as limited liability companies, one is consolidated and three are investments accounted for under the equity method. In 2018, the Ethanol business announced its investment in ELEMENT which is in the process of constructing a bio-refinery and anticipates the bio-refinery to be in production in 2019. There are various service contracts for these investments. The Plant Nutrient business manufactures and distributes agricultural inputs, primary nutrients and specialty fertilizers, to dealers and farmers, along with turf care and corncob-based products. Rail operations include the leasing, marketing and fleet management of railcars and other assets, railcar repair and metal fabrication. The Retail business operated large retail stores, a distribution center, and a lawn and garden equipment sales and service facility. In January 2017, the Company announced its decision to close all retail operations. As of December 31, 2018, the Retail Group has closed all stores, completed its liquidation efforts, and sold its properties. Included in “Other” are the corporate level costs not attributed to an operating segment and the 2016 and 2017 Retail business.

The segment information below includes the allocation of expenses shared by one or more operating segments. Although management believes such allocations are reasonable, the operating information does not necessarily reflect how such data might appear if the segments were operated as separate businesses. Inter-segment sales are made at prices comparable to normal, unaffiliated customer sales. The Company does not have any customers who represent 10 percent, or more, of total revenues.



	Year ended December 31,
(in thousands)	2018		2017		2016
Revenues from external customers
Grain	$	1,436,979	$	2,106,464	$	2,357,171
Ethanol	743,690		708,063		544,556
Plant Nutrient	690,536		651,824		725,176
Rail	174,177		172,123		163,658
Other	—		47,871		134,229
Total	$	3,045,382	$	3,686,345	$	3,924,790



	Year ended December 31,
(in thousands)	2018		2017		2016
Inter-segment sales
Grain	$	2,746	$	761	$	1,638
Plant Nutrient	—		241		470
Rail	1,205		1,213		1,399
Total	$	3,951	$	2,215	$	3,507



	Year ended December 31,
(in thousands)	2018			2017			2016
Interest expense (income)
Grain	$	11,843		$	8,320		$	7,955
Ethanol	(1,888		)	(67		)	35
Plant Nutrient	6,499			6,420			6,448
Rail	11,377			7,023			6,461
Other	17			(129		)	220
Total	$	27,848		$	21,567		$	21,119



	Year ended December 31,
(in thousands)	2018		2017		2016
Equity in earnings of affiliates
Grain	$	12,932	$	4,509	$	(8,746	)
Ethanol	14,209		12,214		18,467
Total	$	27,141	$	16,723	$	9,721



	Year ended December 31,
(in thousands)	2018		2017		2016
Other income, net
Grain	$	2,959	$	3,658	$	5,472
Ethanol	650		54		77
Plant Nutrient	2,495		5,092		3,716
Rail	3,516		2,632		2,218
Other	6,382		11,071		990
Total	$	16,002	$	22,507	$	12,473



	Year ended December 31,
(in thousands)	2018			2017			2016
Income (loss) before income taxes
Grain	$	26,676		$	12,844		$	(15,651	)
Ethanol	22,115			18,878			24,723
Plant Nutrient	12,030			(45,121		)	14,176
Rail	17,379			24,798			32,428
Other	(24,785		)	(32,022		)	(37,171		)
Non-controlling interests	(259		)	98			2,876
Total	$	53,156		$	(20,525	)	$	21,381



	Year ended December 31,
(in thousands)	2018		2017
Identifiable assets
Grain	$	978,974	$	948,871
Ethanol	295,971		180,173
Plant Nutrient	403,780		379,309
Rail	590,407		490,448
Other	122,871		163,553
Total	$	2,392,003	$	2,162,354



	Year ended December 31,
(in thousands)	2018		2017		2016
Capital expenditures
Grain	$	17,203	$	10,899	$	21,428
Ethanol	101,320		3,690		2,301
Plant Nutrient	15,723		10,735		15,153
Rail	5,295		3,478		4,345
Other	3,038		5,800		34,513
Total	$	142,579	$	34,602	$	77,740



	Year ended December 31,
(in thousands)	2018		2017		2016
Acquisition of businesses, net of cash acquired, and other investments
Grain	$	2,248	$	5,436	$	—
Other	1,086		3,750		2,500
Total	$	3,334	$	9,186	$	2,500



	Year ended December 31,
(in thousands)	2018		2017		2016
Depreciation and amortization
Grain	$	16,062	$	18,757	$	18,232
Ethanol	6,136		5,970		5,925
Plant Nutrient	26,871		26,628		28,663
Rail	29,164		23,081		20,082
Other	12,064		11,976		11,423
Total	$	90,297	$	86,412	$	84,325

Grain sales for export to foreign markets amounted to $202.7 million, $166.2 million and $78.3 million in 2018, 2017 and 2016, respectively - the majority of which were sales to Canadian customers. Revenues from leased railcars in Canada totaled $10.7 million, $13.3 million and $13.2 million in 2018, 2017 and 2016, respectively. The net book value of the leased railcars in Canada as of December 31, 2018 and 2017 was $23.2 million and $21.2 million, respectively.