Equity Method Investments

3 Months Ended

Mar. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments.

As of March 31, 2016, the Company’s investments that are accounted for using the equity method of accounting consisted of the following: (1) 30 percent interest in ICP, which manufactures alcohol for fuel, industrial and beverage applications, and (2) 50 percent interest in D.M. Ingredients, GmbH, ("DMI"), which produced certain specialty starch and protein ingredients until June 30, 2015 (see DMI discussion below).

On February 26, 2016, we received a cash dividend distribution from ICP in the amount of $3,300, which was our 30 percent share of the total distribution.

Realizability of DMI Investment. On December 29, 2014, the Company gave notice to DMI and to the Company's partner in DMI, Crespel and Dieters GmbH & Co. KG ("C&D"), to terminate the joint venture effective June 30, 2015. C&D also provided notice to terminate DMI effective June 30, 2015. On June 22, 2015, a termination agreement was executed by and between the Company, DMI, and C&D to dissolve DMI effective June 30, 2015. Additionally, on June 22, 2015 a termination agreement was executed by and between the Company and DMI to terminate their distribution agreement effective June 29, 2015. Under German law, commencing on June 30, 2015, normal operations for DMI ceased and a one-year winding down process began once the registration of resolutions, appointment of liquidators, inventory count, and publication of the notice to potential creditors was complete, which occurred on October 29, 2015. On or after October 29, 2016, the remaining liquidating proceeds will be disbursed.

Summary Financial Information (unaudited). Condensed financial information related to the Company’s non-consolidated equity method investment in ICP is shown below.



	Quarter Ended
	March 31, 2016		March 31, 2015
ICP’s Operating results:
Net sales ^(a)	$	49,609	$	39,598
Cost of sales and expenses ^(b)	47,886		35,169
Net income	$	1,723	$	4,429


^(a)	Includes related party sales to MGPI of $6,241 and $8,754 for the quarters ended March 31, 2016 and 2015, respectively.


^(b)	Includes depreciation and amortization of $735 and $662 for the quarters ended March 31, 2016 and 2015, respectively.

The Company’s equity method investment earnings from joint ventures, based on unaudited financial statements, is as follows:



	Quarter Ended
	March 31, 2016		March 31, 2015
ICP (30% interest)	$	517	$	1,329
DMI (50% interest)	—		23
	$	517	$	1,352

The Company’s investment in joint ventures is as follows:



	March 31, 2016			December 31, 2015
ICP (30% interest)	$	15,396	^(a)	$	18,179
DMI (50% interest)	384			384
	$	15,780		$	18,563


^(a)	During the quarter ended March 31, 2016, the Company received a $3,300 cash distribution from ICP, which reduced the Company's investment amount in ICP.