Operating Segments

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Operating Segments

Segment Information

Although financial information is reviewed by our chief operating decision makers from a variety of perspectives, they view the business in two reportable operating segments: pipelines and terminals, and refinery processing units. These operating segments adhere to the accounting polices used for our consolidated financial statements.

Pipelines and terminals have been aggregated as one reportable segment 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 reportable 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 reportable segment.

	Three Months Ended March 31,
	2020			2019
	(In thousands)
Revenues:
Pipelines and terminals - affiliate	$	81,544		$	81,540
Pipelines and terminals - third-party	26,426			31,138
Refinery processing units - affiliate	19,884			21,819
Total segment revenues	$	127,854		$	134,497
Segment operating income:
Pipelines and terminals	$	58,903		$	63,232
Refinery processing units	9,992			9,922
Total segment operating income	68,895			73,154
Unallocated general and administrative expenses	(2,702		)	(2,620		)
Interest and financing costs, net	(15,549		)	(18,494		)
Loss on early extinguishment of debt	(25,915		)	—
Equity in earnings of equity method investments	1,714			2,100
Gain (loss) on sale of assets and other	506			(310		)
Income before income taxes	$	26,949		$	53,830
Capital Expenditures:
Pipelines and terminals	$	18,618		$	10,718
Refinery processing units	324			—
Total capital expenditures	$	18,942		$	10,718

	March 31, 2020		December 31, 2019
	(In thousands)
Identifiable assets:
Pipelines and terminals (1)	$	1,732,984	$	1,749,843
Refinery processing units	302,654		305,897
Other	152,646		143,492
Total identifiable assets	$	2,188,284	$	2,199,232

(1) Includes goodwill of $270.3 million as of March 31, 2020 and December 31, 2019.