Operating Segments

Although financial information is reviewed by our chief operating decision makers from a variety of perspectives, they view the business in two operating segments: pipelines and terminals, and refinery processing units. These operating segments adhere to the accounting polices used for our consolidated financial statements. For a discussion of these accounting policies and a summary of our operating segments' assets and derivation of revenue, see Note 1.

The pipelines and terminals segment has been aggregated as both pipeline and terminals (1) have similar economic characteristics, (2) similarly provide logistics services of transportation and storage of petroleum products, (3) similarly support the petroleum refining business, including distribution of its products, (4) have principally the same customers and (5) are subject to similar regulatory requirements.

We evaluate the performance of each segment based on its respective operating income. Certain general and administrative expenses and interest and financing costs are excluded from segment operating income as they are not directly attributable to a specific operating segment. Identifiable assets are those used by the segment, whereas other assets are principally equity method investments, cash, deposits and other assets that are not associated with a specific reportable operating segment.



	Years Ended December 31,
	2016			2015			2014
	(in thousands)
Revenues:
Pipelines and terminals - affiliate	$	300,072		$	289,258		$	275,196
Pipelines and terminals - third-party	68,927			66,654			57,349
Refinery processing units - affiliate	33,044			2,963			—
Total segment revenues	$	402,043		$	358,875		$	332,545

Segment operating income:
Pipelines and terminals	$	204,923		$	191,451		$	164,536
Refinery processing units	2,706			(1,438		)	(705		)
Total segment operating income	207,629			190,013			163,831
Unallocated general and administrative expenses	(12,532		)	(12,556		)	(10,824		)
Interest and financing costs, net	(52,112		)	(36,892		)	(43,775		)
Equity in earnings of unconsolidated affiliates	14,213			4,803			2,987
Gain on sale of assets and other	677			486			82
Income before income taxes	$	157,875		$	145,854		$	112,301

Capital Expenditures:
Pipelines and terminals	$	59,704		$	67,406		$	82,184
Refinery processing units	44,119			125,715			116,502
Total capital expenditures	$	103,823		$	193,121		$	198,686



	December 31, 2016		December 31, 2015
	(in thousands)
Identifiable assets:
Pipelines and terminals	$	1,369,756	$	1,391,055
Refinery processing units	342,506		296,080
Other	171,975		90,511
Total identifiable assets	$	1,884,237	$	1,777,646