Segment Disclosures

6 Months Ended

Jun. 30, 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 June 30, 2015
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	238,317	$	102,035		$	44,549		$	—		$	384,901
Product sales revenue(1)	109,323		—			646			—			109,969
Affiliate management fee revenue	—		3,211			347			—			3,558
Total revenue	347,640		105,246			45,542			—			498,428
Operating expenses	105,081		22,293			15,881			(937		)	142,318
Cost of product sales(1)	94,326		—			181			—			94,507
Losses (earnings) of non-controlled entities	43		(23,905		)	(680		)	—			(24,542		)
Operating margin	148,190		106,858			30,160			937			286,145
Depreciation and amortization expense	23,962		8,264			7,277			937			40,440
G&A expenses	23,893		9,031			5,018			—			37,942
Operating profit	$	100,335	$	89,563		$	17,865		$	—		$	207,763

	Three Months Ended June 30, 2016
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	247,842	$	101,340		$	43,058		$	—		$	392,240
Product sales revenue(1)	122,311		(28		)	1,406			—			123,689
Affiliate management fee revenue	124		2,486			358			—			2,968
Total revenue	370,277		103,798			44,822			—			518,897
Operating expenses	98,500		20,550			16,275			(1,163		)	134,162
Cost of product sales(1)	94,392		1,016			295			—			95,703
Losses (earnings) of non-controlled entities	38		(14,711		)	(666		)	—			(15,339		)
Operating margin	177,347		96,943			28,918			1,163			304,371
Depreciation and amortization expense	24,971		9,062			8,106			1,163			43,302
G&A expenses	20,498		9,146			4,898			—			34,542
Operating profit	$	131,878	$	78,735		$	15,914		$	—		$	226,527

	Six Months Ended June 30, 2015
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	459,000	$	192,901		$	86,812		$	—		$	738,713
Product sales revenue(1)	281,962		—			1,134			—			283,096
Affiliate management fee revenue	—		6,238			683			—			6,921
Total revenue	740,962		199,139			88,629			—			1,028,730
Operating expenses	179,293		40,460			31,216			(1,944		)	249,025
Cost of product sales(1)	229,960		—			726			—			230,686
Losses (earnings) of non-controlled entities	98		(32,829		)	(1,401		)	—			(34,132		)
Operating margin	331,611		191,508			58,088			1,944			583,151
Depreciation and amortization expense	47,409		16,493			16,291			1,944			82,137
G&A expenses	46,492		17,117			9,831			—			73,440
Operating profit	$	237,710	$	157,898		$	31,966		$	—		$	427,574

	Six Months Ended June 30, 2016
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	472,592	$	203,068		$	86,655		$	—		$	762,315
Product sales revenue(1)	266,227		1,715			2,309			—			270,251
Affiliate management fee revenue	204		5,270			673			—			6,147
Total revenue	739,023		210,053			89,637			—			1,038,713
Operating expenses	184,485		41,742			33,523			(2,355		)	257,395
Cost of product sales(1)	206,248		2,361			679			—			209,288
Losses (earnings) of non-controlled entities	80		(31,690		)	(1,357		)	—			(32,967		)
Operating margin	348,210		197,640			56,792			2,355			604,997
Depreciation and amortization expense	50,091		18,931			15,679			2,355			87,056
G&A expenses	45,859		18,926			10,631			—			75,416
Operating profit	$	252,260	$	159,783		$	30,482		$	—		$	442,525

⁽¹⁾ Includes gains (losses) on related NYMEX contracts. See Note 8–Derivative Financial Instruments.