Segment Disclosures

9 Months Ended

Sep. 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 September 30, 2015
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	264,156	$	101,122		$	45,109		$	—		$	410,387
Product sales revenue	171,775		—			956			—			172,731
Affiliate management fee revenue	—		3,211			346			—			3,557
Total revenue	435,931		104,333			46,411			—			586,675
Operating expenses	108,972		24,572			14,700			(895		)	147,349
Cost of product sales	85,341		—			181			—			85,522
Losses (earnings) of non-controlled entities	48		(14,906		)	(663		)	—			(15,521		)
Operating margin	241,570		94,667			32,193			895			369,325
Depreciation and amortization expense	24,333		9,502			7,313			895			42,043
G&A expenses	22,238		9,818			5,556			—			37,612
Operating profit	$	194,999	$	75,347		$	19,324		$	—		$	289,670

	Three Months Ended September 30, 2016
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	267,339	$	100,113		$	46,182		$	(201	)	$	413,433
Product sales revenue	105,834		24,750			2,772			—			133,356
Affiliate management fee revenue	218		4,416			359			—			4,993
Total revenue	373,391		129,279			49,313			(201		)	551,782
Operating expenses	95,776		24,628			16,374			(1,492		)	135,286
Cost of product sales	93,761		24,108			373			—			118,242
Losses (earnings) of non-controlled entities	272		(18,180		)	(668		)	—			(18,576		)
Operating margin	183,582		98,723			33,234			1,291			316,830
Depreciation and amortization expense	28,432		9,333			8,025			1,291			47,081
G&A expenses	22,993		8,493			4,314			—			35,800
Operating profit	$	132,157	$	80,897		$	20,895		$	—		$	233,949

	Nine Months Ended September 30, 2015
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	723,156	$	294,023		$	131,921		$	—		$	1,149,100
Product sales revenue	453,737		—			2,090			—			455,827
Affiliate management fee revenue	—		9,449			1,029			—			10,478
Total revenue	1,176,893		303,472			135,040			—			1,615,405
Operating expenses	288,265		65,032			45,916			(2,839		)	396,374
Cost of product sales	315,301		—			907			—			316,208
Losses (earnings) of non-controlled entities	146		(47,735		)	(2,064		)	—			(49,653		)
Operating margin	573,181		286,175			90,281			2,839			952,476
Depreciation and amortization expense	71,742		25,995			23,604			2,839			124,180
G&A expenses	68,730		26,935			15,387			—			111,052
Operating profit	$	432,709	$	233,245		$	51,290		$	—		$	717,244

	Nine Months Ended September 30, 2016
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	739,931	$	303,181		$	132,837		$	(201	)	$	1,175,748
Product sales revenue	372,061		26,465			5,081			—			403,607
Affiliate management fee revenue	422		9,686			1,032			—			11,140
Total revenue	1,112,414		339,332			138,950			(201		)	1,590,495
Operating expenses	280,261		66,370			49,897			(3,847		)	392,681
Cost of product sales	300,009		26,469			1,052			—			327,530
Losses (earnings) of non-controlled entities	352		(49,870		)	(2,025		)	—			(51,543		)
Operating margin	531,792		296,363			90,026			3,646			921,827
Depreciation and amortization expense	78,523		28,264			23,704			3,646			134,137
G&A expenses	68,852		27,419			14,945			—			111,216
Operating profit	$	384,417	$	240,680		$	51,377		$	—		$	676,474