Business Segment Information

12 Months Ended

Dec. 31, 2011

Business Segment Information [Abstract]

Business Segment Information

12. Business Segment Information

Our operations consist of three operating segments: (1) Pipeline Transportation – interstate, intrastate and offshore crude oil, and to a lesser extent, CO₂ pipeline transportation; (2) Refinery Services – processing high sulfur (or "sour") gas streams as part of refining operations to remove the sulfur and sale of the related by-product, and (3) Supply and Logistics – purchasing, transporting, storing, blending and marketing of crude oil and petroleum products (primarily fuel oil, asphalt, and other heavy refined products). 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 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 maintenance capital investment.

	Pipeline Transportation		Refinery Services			Supply & Logistics			Total
Year Ended December 31, 2011
Segment margin (a)	$	67,908	$	74,618		$	59,975		$	202,501
Capital expenditures (b)	$	14,501	$	1,846		$	170,647		$	186,994
Net fixed and other long-term assets (c)	$	594,102	$	384,340		$	376,298		$	1,354,740
Revenues:
External customers	$	50,391	$	210,394		$	2,828,884		$	3,089,669
Intersegment (d)		11,799		(8,683	)		(3,116	)		—
Total revenues of reportable segments	$	62,190	$	201,711		$	2,825,768		$	3,089,669
Year Ended December 31, 2010
Segment margin (a)	$	48,305	$	62,923		$	38,336		$	149,564
Capital expenditures (b)	$	333,557	$	1,433		$	1,740		$	336,730
Net fixed and other long-term assets (c)	$	604,572	$	400,164		$	221,932		$	1,226,668
Revenues:
External customers	$	45,367	$	158,456		$	1,897,501		$	2,101,324
Intersegment (d)		10,285		(7,396	)		(2,889	)		—
Total revenues of reportable segments	$	55,652	$	151,060		$	1,894,612		$	2,101,324
Year Ended December 31, 2009
Segment margin (a)	$	42,162	$	51,844		$	40,484		$	134,490
Capital expenditures (b)	$	3,043	$	2,572		$	23,581		$	29,196
Net fixed and other long-term assets (c)	$	279,574	$	409,556		$	269,753		$	958,883
Revenues:
External customers	$	44,461	$	147,240		$	1,243,659		$	1,435,360
Intersegment (d)		6,490		(5,875	)		(615	)		—
Total revenues of reportable segments	$	50,951	$	141,365		$	1,243,044		$	1,435,360

(a) A reconciliation of Segment Margin to income (loss) before income taxes for each year presented is as follows:

	Year Ended December 31,
	2011			2010			2009
Segment margin	$	202,501		$	149,564		$	134,490
Corporate general and administrative expenses		(31,685	)		(110,058	)		(36,475	)
Depreciation, amortization and impairment		(61,926	)		(53,557	)		(67,586	)
Net loss on disposal of surplus assets		(264	)		(12	)		(160	)
Interest expense		(35,767	)		(22,924	)		(13,660	)
Distributable cash from equity investees in excess of equity in earnings		(16,681	)		(2,284	)		496
Non-cash items not included in segment margin		(1,531	)		(4,479	)		(4,089	)
Cash payments from direct financing leases in excess of earnings		(4,615	)		(4,203	)		(3,758	)
Income before income taxes	$	50,032		$	(47,953	)	$	9,258

(b) Capital expenditures include fixed asset additions and acquisitions of businesses.

(c) Net fixed and other long-term assets is a measure used by management in evaluating the results of our operations on a segment basis. Current assets are not allocated to segments as the amounts are not meaningful in evaluating the success of the segment's operations. Amounts for our Pipeline Transportation segment include our investment in CHOPS totaling $314.7 million and $329.7 million at December 31, 2011 and 2010, respectively. Amounts for our Supply and Logistics segment include investments in equity investees totaling $12.2 million, $13.7 million and $15.1 million at December 31, 2011, 2010 and 2009, respectively.

(d) Intersegment sales were conducted on an arm's length basis.