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References to the Company
References to “Green Plains” or the “Company” in the consolidated financial statements and in these notes to the
consolidated financial statements refer to Green Plains Renewable Energy, Inc., an Iowa corporation, and its subsidiaries.
Consolidated Financial Statements
The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and entities
which it controls. All significant intercompany balances and transactions have been eliminated on a consolidated basis for
reporting purposes. Unconsolidated entities are included in the financial statements on an equity basis.
Use of Estimates in the Preparation of Consolidated Financial Statements
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles,
or GAAP, requires management to make certain estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Certain amounts previously reported within the consolidated financial statements have been reclassified to conform to
the current year presentation. The Company previously reported margin deposits required for exchange-traded activity as
deposits on the consolidated balance sheets. The liabilities associated with this exchange-traded activity were previously
reported as a derivative financial instrument liability. Since this activity has a right of offset, the Company reclassified cash
deposits of approximately $43.4 million at December 31, 2010, and derivative liabilities of approximately $32.1 million at
December 31, 2010, to derivative financial instruments in current assets.
Description of Business
The Company operates its business within four segments: (1) production of ethanol and distillers grains, collectively
referred to as ethanol production, (2) corn oil production, (3) grain warehousing and marketing, as well as sales and related
services of agronomy and petroleum products, collectively referred to as agribusiness, and (4) marketing and distribution of
Company-produced and third-party ethanol, distillers grains and corn oil, collectively referred to as marketing and
distribution. Additionally, the Company is a partner in a joint venture that was formed to commercialize advanced photo-
bioreactor technologies for the growing and harvesting of algal biomass.
Ethanol Production Segment
Green Plains is North America’s fourth largest ethanol producer. The Company operates its nine ethanol plants, which
have the capacity to produce approximately 740 million gallons per year, or mmgy, of ethanol, through separate wholly-
owned operating subsidiaries. The Company’s ethanol plants also produce co-products such as wet, modified wet or dried
distillers grains, as well as corn oil which is included in a separate segment. The Company’s plants use a dry mill process to
produce ethanol and co-products. At capacity, the Company’s plants consume approximately 265 million bushels of corn and
produce approximately 2.1 million tons of distillers grains annually.
Corn Oil Production Segment
The Company produces corn oil at all nine of its ethanol plants within the corn oil production segment, which have the
capacity to produce approximately 130 million pounds annually. The Company operates its corn oil extraction systems
through its wholly-owned subsidiary, Green Plains Commodities LLC. The corn oil systems are designed to extract non-
edible corn oil from the whole silage process immediately prior to production of distillers grains. Industrial uses for corn oil
include feedstock for biodiesel, livestock feed additives, rubber substitutes, rust preventatives, inks, textiles, soaps and