Segment Information

12 Months Ended

Dec. 31, 2019

The Company’s operations include four reportable business segments that are distinguished primarily on the basis of products and services offered. The Trade business includes commodity merchandising, the operation of terminal grain elevator facilities and, historically, the investments in LTG and Thompsons Limited. In January 2019, the Company acquired the remaining 67.5% of LTG equity that it did not already own. The transaction also resulted in the consolidation of Thompsons Limited of Ontario, Canada and related entities, which LTG and the Company jointly owned. The Company has evaluated its segment reporting structure as a result of the acquisition. The presentation includes a majority of the acquired business within the legacy Grain Group which has been renamed, Trade Group. The acquired ethanol trading business of LTG is included within the Ethanol Group. The Company also moved certain commission income and an elevator lease from the legacy Grain Group to the Ethanol Group to better align business segments. Prior year results have been recast to reflect this change.

The Ethanol business purchases and sells ethanol, and provides risk management, origination and management services to ethanol production facilities. Historically, these facilities were organized as limited liability companies, two were consolidated and three were investments accounted for under the equity method. On October 1, 2019, the Company and Marathon Petroleum Corporation merged the three existing equity method investments and the wholly owned subsidiary, The Andersons Denison Ethanol LLC into TAMH. As a result of this merger, the results of the legacy LLCs accounted for under the equity method are now consolidated entities in the Company's Consolidated Financial Statements. 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. 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 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)	2019		2018		2017
Revenues from external customers
Trade	$	6,387,744	$	1,433,660	$	2,103,222
Ethanol	968,779		747,009		711,305
Plant Nutrient	646,730		690,536		651,824
Rail	166,938		174,177		172,123
Other	—		—		47,871
Total	$	8,170,191	$	3,045,382	$	3,686,345



	Year ended December 31,
(in thousands)	2019		2018		2017
Inter-segment sales
Trade	$	2,658	$	2,746	$	761
Plant Nutrient	1,166		—		241
Rail	5,245		1,205		1,213
Total	$	9,069	$	3,951	$	2,215



	Year ended December 31,
(in thousands)	2019			2018			2017
Interest expense (income)
Trade	$	35,202		$	11,845		$	8,320
Ethanol	584			(1,890		)	(67		)
Plant Nutrient	7,954			6,499			6,420
Rail	16,486			11,377			7,023
Other	(535		)	17			(129		)
Total	$	59,691		$	27,848		$	21,567



	Year ended December 31,
(in thousands)	2019			2018		2017
Equity in earnings of affiliates
Trade	$	(6,835	)	$	12,932	$	4,509
Ethanol	(524		)	14,209		12,214
Total	$	(7,359	)	$	27,141	$	16,723



	Year ended December 31,
(in thousands)	2019		2018		2017
Other income, net
Trade	$	11,142	$	843	$	1,590
Ethanol	913		2,766		2,122
Plant Nutrient	4,903		2,495		5,092
Rail	1,583		3,516		2,632
Other	1,568		6,382		11,071
Total	$	20,109	$	16,002	$	22,507



	Year ended December 31,
(in thousands)	2019			2018			2017
Income (loss) before income taxes, net of noncontrolling interest
Trade	$	(14,780	)	$	21,715		$	8,197
Ethanol	48,359			27,076			23,525
Plant Nutrient	9,159			12,030			(45,121		)
Rail	15,090			17,379			24,798
Other	(26,470		)	(24,785		)	(32,022		)
Income (loss) before income taxes, net of noncontrolling interest	31,358			53,415			(20,623		)
Noncontrolling interests	(3,247		)	(259		)	98
Income (loss) before income taxes	$	28,111		$	53,156		$	(20,525	)



	Year ended December 31,
(in thousands)	2019		2018
Identifiable assets
Trade	$	2,012,060	$	978,974
Ethanol	690,548		295,971
Plant Nutrient	383,781		403,780
Rail	693,931		590,407
Other	120,421		122,871
Total	$	3,900,741	$	2,392,003



	Year ended December 31,
(in thousands)	2019		2018		2017
Capital expenditures
Trade	$	31,173	$	17,203	$	10,899
Ethanol	104,023		101,320		3,690
Plant Nutrient	20,413		15,723		10,735
Rail	1,827		5,295		3,478
Other	3,548		3,038		5,800
Total	$	160,984	$	142,579	$	34,602



	Year ended December 31,
(in thousands)	2019		2018		2017
Depreciation and amortization
Trade	$	50,973	$	16,062	$	18,757
Ethanol	23,727		6,136		5,970
Plant Nutrient	25,985		26,871		26,628
Rail	34,122		29,164		23,081
Other	11,359		12,064		11,976
Total	$	146,166	$	90,297	$	86,412



	Year ended December 31,
(in thousands)	2019		2018		2017
Revenues from external customers by geographic region
United States	$	6,350,643	$	2,832,007	$	3,506,053
Canada	666,289		136,439		148,974
Mexico	294,644		34		—
Other	858,615		76,902		31,318
Total	$	8,170,191	$	3,045,382	$	3,686,345

The net book value of Trade property, plant and equipment in Canada as of December 31, 2019 was $41.2 million and de minimis for the year ended December 31, 2018. The net book value of the leased railcars in Canada as of December 31, 2019 and 2018 was $22.7 million and $23.2 million, respectively.