Reportable Segments and Geographic Information | REPORTABLE SEGMENTS AND GEOGRAPHIC INFORMATION The Company reports its reportable segments based on products and services provided to customers. The Company re-assesses its reportable segments on an annual basis. The Company has three reportable segments, which generally align the Company's external financial reporting segments with its internal operating segments, which are based on its internal organizational structure, operating decisions and performance assessment. The Company's reportable segments at June 30, 2017 and for the year ended December 31, 2016 are composed of Biomass-based Diesel, Services, Renewable Chemicals and Corporate and other activities. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Biomass-based Diesel segment processes waste vegetable oils, animal fats, virgin vegetable oils and other feedstocks and methanol into biomass-based diesel. The Biomass-based Diesel segment also includes the Company’s purchases and resale of biomass-based diesel produced by third parties. Revenue is derived from the purchases and sales of biomass-based diesel, RINs and raw material feedstocks acquired from third parties, sales of biomass-based diesel produced under toll manufacturing arrangements with third party facilities, sales of processed biomass-based diesel from Company facilities, related by-products and renewable energy government incentive payments, in the U.S. and internationally. The Services segment offers services for managing the construction of biomass-based diesel production facilities and managing ongoing operations of third-party plants and collects fees related to the services provided. The Company does not allocate items that are of a non-operating nature or corporate expenses to the business segments. Revenues from services provided to other segments are recorded by the Services segment at cost. The Renewable Chemicals segment consists of research and development activities involving the production of renewable chemicals, additional advanced biofuels and other products from the Company's proprietary microbial fermentation process and the operations of a demonstration scale facility located in Okeechobee, Florida. The Corporate and Other segment includes trading activities related to petroleum-based heating oil and diesel fuel as well as corporate activities, which consist of corporate office expenses such as compensation, benefits, occupancy and other administrative costs, including management service expenses. Corporate and Other also includes income/(expense) not associated with the reportable segments, such as corporate general and administrative expenses, shared service expenses, interest expense and interest income, all reflected on an accrual basis of accounting. In addition, Corporate and Other includes cash and other assets not associated with the reportable segments, including investments. Intersegment revenues are reported by the Services and Corporate and Other segments. The following table represents the significant items by reportable segment: Three Months Three Months Six Months Six Months Net revenues: Biomass-based Diesel (includes REG Germany's net sales of $41,473 and $95,025 for the three and six months ended June 30, 2017, respectively, and $45,748 and $82,667 for the three and six months ended June 30, 2016, respectively) $ 532,527 $ 539,631 $ 922,632 $ 824,669 Services 20,922 21,396 43,755 42,133 Renewable Chemicals 1,002 1,000 1,830 1,000 Corporate and Other 39,366 23,643 77,138 40,632 Intersegment revenues (58,714 ) (27,369 ) (91,359 ) (52,262 ) $ 535,103 $ 558,301 $ 953,996 $ 856,172 Income (loss) before income taxes: Biomass-based Diesel (includes REG Germany's income (loss) of ($2,092) and ($1,332) for the three and six months ended June 30, 2017, respectively and $1,183 and $1,616 for the three and six months ended June 30, 2016, respectively) $ 4,323 $ (3,591 ) $ (6,392 ) $ 1,546 Services (267 ) 1,261 (377 ) 1,834 Renewable Chemicals (4,828 ) (3,924 ) (9,835 ) (8,605 ) Corporate and Other (32,077 ) 15,264 (31,084 ) 8,075 $ (32,849 ) $ 9,010 $ (47,688 ) $ 2,850 Depreciation and amortization expense, net: Biomass-based Diesel (includes REG Germany's amounts of $788 and $1,474 for the three and six months ended June 30, 2017, respectively and $594 and $1,445 for the three and six months ended June 30, 2016, respectively) $ 7,830 $ 7,140 $ 15,570 $ 14,068 Services 251 117 482 213 Renewable Chemicals 384 368 769 782 Corporate and Other 508 392 1,015 789 $ 8,973 $ 8,017 $ 17,836 $ 15,852 Cash paid for purchases of property, plant and equipment: Biomass-based Diesel (includes REG Germany's amounts of $1,227 and $2,395 for the three and six months ended June 30, 2017, respectively, and $374 and $374 for the three and six months ended June 30, 2016, respectively) $ 13,517 $ 11,895 $ 29,398 $ 25,499 Services 938 — 1,520 1,166 Renewable Chemicals — 619 7 619 Corporate and Other 946 183 1,112 183 $ 15,401 $ 12,697 $ 32,037 $ 27,467 June 30, 2017 December 31, 2016 Goodwill: Services $ 16,080 $ 16,080 Assets: Biomass-based Diesel (including REG Germany's assets of $58,039 and $54,646, respectively) $ 964,373 $ 1,026,349 Services 49,941 53,823 Renewable Chemicals 22,330 22,883 Corporate and Other 309,764 299,825 Intersegment eliminations (285,893 ) (266,277 ) $ 1,060,515 $ 1,136,603 Geographic Information: The following geographic data include net sales attributed to the countries based on the location of the subsidiary making the sale and long-lived assets based on physical location. Long-lived assets represent the net book value of property, plant and equipment. Three Months Three Months Six Months Six Months Net revenues: United States $ 477,769 $ 512,553 $ 843,110 $ 773,505 Germany 41,473 45,748 $ 95,025 82,667 Other Foreign 15,861 — 15,861 — Non-United States 57,334 45,748 110,886 82,667 $ 535,103 $ 558,301 $ 953,996 $ 856,172 June 30, 2017 December 31, 2016 Long-lived assets: United States $ 593,247 $ 580,868 Foreign 21,637 18,606 $ 614,884 $ 599,474 |