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Business Segment Information
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Business Segment Information
11. Business Segment Information
In the fourth quarter of 2014, we reorganized our operating segments as a result of a change in the way our Chief Executive Officer, who is our chief operating decision maker, evaluates the performance of operations, develops strategy and allocates resources. The results of our marine transportation activities, formerly reported in the Supply and Logistics Segment, are now reported in our Marine Transportation Segment. In addition, the results of our offshore and onshore pipeline transportation activities, formerly reported in the Pipeline Transportation Segment, are now reported separately in our Onshore Pipeline Transportation Segment and Offshore Pipeline Transportation Segment. Our disclosures related to prior periods have been recast to reflect our reorganized segments.    
As a result of the above changes, we currently manage our businesses through five divisions that constitute our reportable segments:
•
Onshore Pipeline Transportation – transportation of crude oil, and to a lesser extent, CO2;
•
Offshore Pipeline Transportation – offshore transportation of crude oil in the Gulf of Mexico;
•
Refinery Services – processing high sulfur (or “sour”) gas streams as part of refining operations to remove the sulfur and selling the related by-product, NaHS;
•
Marine Transportation – marine transportation to provide waterborne transportation of petroleum products and crude oil throughout North America; and
•
Supply and Logistics – terminaling, blending, storing, marketing and transporting crude oil and petroleum products (primarily fuel oil, asphalt, and other heavy refined products) and, on a smaller scale, CO2.
Substantially all of our revenues are derived from, and substantially all of our assets are located in, the United States.
We define Segment Margin as revenues less product costs, operating expenses (excluding non-cash charges, such as depreciation and amortization), and segment general and administrative expenses, plus our equity in distributable cash generated by our equity investees. In addition, our Segment Margin definition excludes the non-cash effects of our legacy stock appreciation rights plan and includes the non-income portion of payments received under direct financing leases.
Our chief operating decision maker (our Chief Executive Officer) evaluates segment performance based on a variety of measures including Segment Margin, segment volumes, where relevant, and capital investment. 
Segment information for the periods presented below was as follows:
 
Onshore Pipeline
Transportation
 
Offshore Pipeline Transportation
 
Refinery
Services
 
Marine Transportation
 
Supply &
Logistics
 
Total
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Segment margin (a)
$
14,363

 
$
25,100

 
$
20,221

 
$
27,225

 
$
11,658

 
$
98,567

Capital expenditures (b)
$
40,893

 
$
86

 
$
238

 
$
11,086

 
$
55,850

 
$
108,153

Revenues:
 
 
 
 
 
 
 
 
 
 
 
External customers
$
15,856

 
$
1,258

 
$
48,786

 
$
60,603

 
$
529,824

 
$
656,327

Intersegment (c)
3,077

 
—

 
(2,462
)
 
1,991

 
(2,606
)
 
—

Total revenues of reportable segments
$
18,933

 
$
1,258

 
$
46,324

 
$
62,594

 
$
527,218

 
$
656,327

Three Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Segment margin (a)
$
16,531

 
$
11,435

 
$
21,627

 
$
18,978

 
$
14,110

 
$
82,681

Capital expenditures (b)
$
3,845

 
$
3,192

 
$
597

 
$
37,077

 
$
95,413

 
$
140,124

Revenues:
 
 
 
 
 
 
 
 
 
 
 
External customers
$
19,236

 
$
522

 
$
55,552

 
$
51,892

 
$
887,847

 
$
1,015,049

Intersegment (c)
3,434

 
—

 
(2,751
)
 
4,056

 
(4,739
)
 
—

Total revenues of reportable segments
$
22,670

 
$
522

 
$
52,801

 
$
55,948

 
$
883,108

 
$
1,015,049

Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Segment Margin (a)
$
28,686

 
$
50,298

 
$
39,381

 
$
52,918

 
$
21,405

 
$
192,688

Capital expenditures (b)
$
109,484

 
$
2,139

 
$
1,450

 
$
27,662

 
$
92,626

 
$
233,361

Revenues:
 
 
 
 
 
 
 
 
 
 
 
External customers
$
31,687

 
$
2,048

 
$
97,221

 
$
115,243

 
$
936,985

 
$
1,183,184

Intersegment (c)
6,314

 
—

 
(4,773
)
 
4,722

 
(6,263
)
 
—

Total revenues of reportable segments
$
38,001

 
$
2,048

 
$
92,448

 
$
119,965

 
$
930,722

 
$
1,183,184

Six Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Segment Margin (a)
$
31,220

 
$
24,838

 
$
42,499

 
$
39,435

 
$
22,040

 
$
160,032

Capital expenditures (b)
$
27,741

 
$
13,576

 
$
899

 
$
48,036

 
$
152,650

 
$
242,902

Revenues:
 
 
 
 
 
 
 
 
 
 
 
External customers
$
34,739

 
$
1,469

 
$
112,659

 
$
102,982

 
$
1,782,919

 
$
2,034,768

Intersegment (c)
7,904

 
—

 
(5,665
)
 
9,259

 
(11,498
)
 
—

Total revenues of reportable segments
$
42,643

 
$
1,469

 
$
106,994

 
$
112,241

 
$
1,771,421

 
$
2,034,768

Total assets by reportable segment were as follows:
 
June 30,
2015
 
December 31,
2014
Onshore pipeline transportation
$
516,365

 
$
460,012

Offshore pipeline transportation
631,998

 
645,668

Refinery services
394,794

 
403,703

Marine transportation
754,515

 
745,128

Supply and logistics
1,042,620

 
907,189

Other assets
63,989

 
68,674

Total consolidated assets
3,404,281

 
3,230,374

 
(a)
A reconciliation of Segment Margin to net income for the periods is presented below.
(b)
Capital expenditures include maintenance and growth capital expenditures, such as fixed asset additions (including enhancements to existing facilities and construction of growth projects) as well as acquisitions of businesses and interests in equity investees. In addition to construction of growth projects, capital spending in our pipeline transportation segment included $0.0 million and $1.8 million during the three and six months ended June 30, 2015 and $2.3 million and $12.7 million during the three and six months ended June 30, 2014 representing capital contributions to our SEKCO equity investee to fund our share of the construction costs for its pipeline.
(c)
Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.
Reconciliation of Segment Margin to net income:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
Segment Margin
$
98,567

 
$
82,681

 
$
192,688

 
$
160,032

Corporate general and administrative expenses
(13,953
)
 
(13,789
)
 
(26,252
)
 
(24,850
)
Depreciation and amortization
(28,205
)
 
(20,491
)
 
(55,330
)
 
(39,771
)
Interest expense
(17,905
)
 
(14,069
)
 
(37,120
)
 
(26,873
)
Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income (1)
(7,038
)
 
(7,808
)
 
(17,421
)
 
(13,585
)
Non-cash items not included in Segment Margin
1,771

 
(3,043
)
 
(843
)
 
282

Cash payments from direct financing leases in excess of earnings
(1,405
)
 
(1,371
)
 
(2,767
)
 
(2,709
)
Loss on extinguishment of debt
(19,225
)
 
—

 
(19,225
)
 
—

Income tax expense
(942
)
 
(962
)
 
(1,850
)
 
(1,603
)
Net income
$
11,665

 
$
21,148

 
31,880

 
50,923


(1)
Includes distributions attributable to the quarter and received during or promptly following such quarter.