Segment Information

9 Months Ended

Sep. 30, 2020

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Revenues:
Pipelines and terminals - affiliate	$	80,589	$	85,749	$	238,123	$	250,259
Pipelines and terminals - third-party	26,739		29,868		72,409		89,388
Refinery processing units - affiliate	20,403		20,278		59,860		61,496
Total segment revenues	$	127,731	$	135,895	$	370,392	$	401,143

Segment operating income:
Pipelines and terminals	$	15,912	$	56,944	$	120,445	$	178,112
Refinery processing units	9,973		9,906		29,371		27,794
Total segment operating income	25,885		66,850		149,816		205,906
Unallocated general and administrative expenses	(2,332)		(2,714)		(7,569)		(7,322)
Interest and financing costs, net	(11,301)		(16,564)		(37,816)		(53,737)

Loss on early extinguishment of debt	—		—		(25,915)		—
Equity in earnings of equity method investments	1,316		1,334		5,186		5,217
Gain on sales-type leases	—		35,166		33,834		35,166
Gain (loss) on sale of assets and other	7,465		142		8,439		(57)
Income before income taxes	$	21,033	$	84,214	$	125,975	$	185,173

Capital Expenditures:
Pipelines and terminals	$	7,902	$	5,320	$	38,318	$	23,072
Refinery processing units	—		756		324		756
Total capital expenditures	$	7,902	$	6,076	$	38,642	$	23,828


	September 30, 2020		December 31, 2019
	(In thousands)
Identifiable assets:
Pipelines and terminals (1)	$	1,712,033	$	1,749,843
Refinery processing units	305,999		305,897
Other	143,853		143,492
Total identifiable assets	$	2,161,885	$	2,199,232

(1) Includes goodwill of $234.7 million as of September 30, 2020 and $270.3 million as of December 31, 2019.