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oil, collectively referred to as marketing and distribution. Selling, general and administrative expenses, primarily consisting
of compensation of corporate employees, professional fees and overhead costs not directly related to a specific operating
segment, are reflected in the table below as corporate activities.
In the second quarter of 2011, the Company redefined its operating segments to include corn oil production as a
reportable segment. Corn oil production, which the Company initiated in October 2010, was previously reported as a
component of the marketing and distribution segment. The Company added the corn oil production segment to reflect the
manner in which the Company’s executive management currently manages, allocates resources, and measures performance
of its businesses. Prior period segment results have been reclassified to reflect this change.
During the normal course of business, the Company enters into transactions between segments. Examples of these
intersegment transactions include, but are not limited to, the ethanol production segment selling ethanol to the marketing and
distribution segment and the agribusiness segment selling grain to the ethanol production segment. These intersegment
activities are recorded by each segment at prices approximating market and treated as if they are third-party transactions.
Consequently, these transactions impact segment performance. However, revenues and corresponding costs are eliminated in
consolidation and do not impact the Company’s consolidated results.
The following are certain financial data for the Company’s operating segments for the periods indicated (in thousands):
Revenue:
Ethanol production
Revenue fromexternal customers
$ 128,780
$
63,001
$
61,629
Intersegment revenue
2,005,141
1,052,424
669,708
Total segment revenue
2,133,921
1,115,425
731,337
Corn oil production
Revenue fromexternal customers
1,466
995
-
Intersegment revenue
43,391
707
-
Total segment revenue
44,857
1,702
-
Agribusiness
Revenue fromexternal customers
358,968
248,619
147,890
Intersegment revenue
195,172
122,133
74,076
Total segment revenue
554,140
370,752
221,966
Marketing and distribution
Revenue fromexternal customers
3,064,498
1,821,307
1,096,274
Intersegment revenue
467
293
-
Total segment revenue
3,064,965
1,821,600
1,096,274
Revenue including intersegment activity
5,797,883
3,309,479
2,049,577
Intersegment elimination
(2,244,171)
(1,175,557)
(743,784)
Revenue as reported
$ 3,553,712
$ 2,133,922
$ 1,305,793
Gross profit:
Ethanol production
$
87,010
$ 105,079
$
47,825
Corn oil production
27,067
878
-
Agribusiness
34,749
25,199
22,561
Marketing and distribution
23,112
21,192
13,572
Intersegment eliminations
294
178
90
$ 172,232
$ 152,526
$
84,048
Year EndedDecember 31,
2011
2010
2009