Segment Disclosures

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Disclosures

Segment Disclosures

Our reportable segments are strategic business units that offer different products and services. Our segments are managed separately as each segment requires different marketing strategies and business knowledge. Management evaluates performance based on segment operating margin, which includes revenue from affiliates and external customers, operating expenses, cost of product sales and earnings of non-controlled entities.

We believe that investors benefit from having access to the same financial measures used by management. Operating margin, which is presented in the following tables, is an important measure used by management to evaluate the economic performance of our core operations. Operating margin is not a GAAP measure, but the components of operating margin are computed using amounts that are determined in accordance with GAAP. A reconciliation of operating margin to operating profit, which is its nearest comparable GAAP financial measure, is included in the tables below. Operating profit includes depreciation and amortization expense and general and administrative (“G&A”) expense that management does not consider when evaluating the core profitability of our separate operating segments.

	Three Months Ended March 31, 2015
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	220,683	$	90,866		$	42,263		$	—		$	353,812
Product sales revenue	172,639		—			488			—			173,127
Affiliate management fee revenue	—		3,027			336			—			3,363
Total revenue	393,322		93,893			43,087			—			530,302
Operating expenses	74,212		18,167			15,335			(1,007		)	106,707
Cost of product sales	135,634		—			545			—			136,179
Losses (earnings) of non-controlled entities	55		(8,924		)	(721		)	—			(9,590		)
Operating margin	183,421		84,650			27,928			1,007			297,006
Depreciation and amortization expense	23,447		8,229			9,014			1,007			41,697
G&A expenses	22,599		8,086			4,813			—			35,498
Operating profit	$	137,375	$	68,335		$	14,101		$	—		$	219,811

	Three Months Ended March 31, 2016
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	224,750	$	101,728		$	43,597		$	—		$	370,075
Product sales revenue	143,916		1,743			903			—			146,562
Affiliate management fee revenue	80		2,784			315			—			3,179
Total revenue	368,746		106,255			44,815			—			519,816
Operating expenses	85,985		21,192			17,248			(1,192		)	123,233
Cost of product sales	111,856		1,345			384			—			113,585
Losses (earnings) of non-controlled entities	42		(16,979		)	(691		)	—			(17,628		)
Operating margin	170,863		100,697			27,874			1,192			300,626
Depreciation and amortization expense	25,120		9,869			7,573			1,192			43,754
G&A expenses	25,361		9,780			5,733			—			40,874
Operating profit	$	120,382	$	81,048		$	14,568		$	—		$	215,998