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Business Segment Information
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information
We currently manage our businesses through five divisions that constitute our reportable segments:
•
Offshore Pipeline Transportation – offshore pipeline transportation and processing of crude oil and natural gas in the Gulf of Mexico;
•
Onshore Pipeline Transportation – transportation of crude oil, and to a lesser extent, CO2;
•
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 gains and 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:
 
Offshore Pipeline Transportation
 
Onshore Pipeline
Transportation
 
Refinery
Services
 
Marine Transportation
 
Supply &
Logistics
 
Total
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Segment margin (a)
$
86,557

 
$
10,603

 
$
20,526

 
$
16,697

 
$
6,957

 
$
141,340

Capital expenditures (b)
$
3,977

 
$
54,968

 
$
488

 
$
26,937

 
$
30,380

 
$
116,750

Revenues:
 
 
 
 
 
 
 
 
 
 
 
External customers
$
89,717

 
$
10,846

 
$
48,069

 
$
53,573

 
$
257,845

 
$
460,050

Intersegment (c)
—

 
3,153

 
(2,344
)
 
1,712

 
(2,521
)
 
—

Total revenues of reportable segments
$
89,717

 
$
13,999

 
$
45,725

 
$
55,285

 
$
255,324

 
$
460,050

Three Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Segment margin (a)
$
70,943

 
$
14,984

 
$
20,692

 
$
26,583

 
$
7,508

 
$
140,710

Capital expenditures (b)
$
1,520,268

 
$
45,933

 
$
118

 
$
12,489

 
$
43,942

 
$
1,622,750

Revenues:
 
 
 
 
 
 
 
 
 
 
 
External customers
$
61,388

 
$
16,735

 
$
45,738

 
$
58,490

 
$
389,983

 
$
572,334

Intersegment (c)
—

 
3,174

 
(2,406
)
 
2,046

 
(2,814
)
 
—

Total revenues of reportable segments
$
61,388

 
$
19,909

 
$
43,332

 
$
60,536

 
$
387,169

 
$
572,334

Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Segment Margin (a)
$
249,457

 
$
38,370

 
$
61,586

 
$
53,695

 
$
25,599

 
$
428,707

Capital expenditures (b)
$
35,175

 
$
156,977

 
$
1,645

 
$
62,928

 
$
101,704

 
$
358,429

Revenues:
 
 
 
 
 
 
 
 
 
 
 
External customers
$
242,672

 
$
36,356

 
$
136,437

 
$
155,197

 
$
713,778

 
$
1,284,440

Intersegment (c)
2,165

 
12,044

 
(6,852
)
 
4,733

 
(12,090
)
 
—

Total revenues of reportable segments
$
244,837

 
$
48,400

 
$
129,585

 
$
159,930

 
$
701,688

 
$
1,284,440

Nine Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Segment Margin (a)
$
121,241

 
$
43,670

 
$
60,073

 
$
79,501

 
$
28,913

 
$
333,398

Capital expenditures (b)
$
1,522,407

 
$
155,417

 
$
1,568

 
$
40,151

 
$
136,568

 
$
1,856,111

Revenues:
 
 
 
 
 
 
 
 
 
 
 
External customers
$
63,436

 
$
48,422

 
$
142,959

 
$
173,733

 
$
1,326,968

 
$
1,755,518

Intersegment (c)
—

 
9,488

 
(7,179
)
 
6,768

 
(9,077
)
 
—

Total revenues of reportable segments
$
63,436

 
$
57,910

 
$
135,780

 
$
180,501

 
$
1,317,891

 
$
1,755,518

Total assets by reportable segment were as follows:
 
September 30,
2016
 
December 31,
2015
Offshore pipeline transportation
$
2,595,408

 
$
2,623,478

Onshore pipeline transportation
706,589

 
614,484

Refinery services
390,169

 
394,626

Marine transportation
813,282

 
777,952

Supply and logistics
1,107,798

 
1,000,851

Other assets
42,238

 
48,208

Total consolidated assets
5,655,484

 
5,459,599

 
(a)
A reconciliation of total Segment Margin to net income attributable to Genesis Energy, L.P. 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 contributions to equity investees related to same. In addition to construction of growth projects, capital spending in our Offshore Pipeline Transportation Segment included $2.5 million during the nine months ended September 30, 2015 representing capital contributions to SEKCO, which was an equity investee at that time, to fund our share of the construction costs for its pipeline. We acquired the remaining 50% interest in SEKCO in July 2015.
(c)
Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.
Reconciliation of total Segment Margin to net income:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2016
 
2015
 
2016
 
2015
Total Segment Margin
$
141,340

 
$
140,710

 
$
428,707

 
$
333,398

Corporate general and administrative expenses
(10,420
)
 
(25,940
)
 
(32,269
)
 
(52,192
)
Depreciation and amortization
(54,265
)
 
(41,170
)
 
(156,800
)
 
(96,500
)
Interest expense
(34,735
)
 
(29,617
)
 
(104,657
)
 
(66,737
)
Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income (1)
(9,063
)
 
(7,962
)
 
(30,818
)
 
(25,383
)
Non-cash items not included in Segment Margin
1,779

 
1,316

 
(5,428
)
 
473

Cash payments from direct financing leases in excess of earnings
(1,586
)
 
(1,448
)
 
(4,645
)
 
(4,215
)
Gain on step up of historical basis
—

 
335,260

 
—

 
335,260

Loss on extinguishment of debt
—

 
—

 
—

 
(19,225
)
Other, net
—

 
(6,643
)
 
—

 
(6,643
)
Income tax expense
(949
)
 
(1,292
)
 
(2,959
)
 
(3,142
)
Net income attributable to Genesis Energy, L.P.
$
32,101

 
$
363,214

 
$
91,131

 
$
395,094


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