Note 14 - Operating Segments

Our revenues are derived from three operating segments: Terminalling and Transportation, Gathering and Processing and Wholesale. Refer to Note 1 for discussion of the operations included within each of our operating segments.

We evaluate the performance of our segments based primarily on segment operating income and EBITDA. For the purposes of our operating segment disclosure, we present operating income as it is the most comparable measure to the amounts presented in our statements of consolidated operations. Segment operating income includes those revenues and expenses that are directly attributable to management of the respective segment. Certain general and administrative expenses, interest and financing costs and equity in earnings of equity method investments 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 cash, deposits and other assets that are not associated with a specific operating segment.

Segment Information (in millions)



	Year Ended December 31,
	2018 (a)			2017 (a)			2016 (a)
Revenues
Terminalling and Transportation:
Terminalling	$	888		$	690		$	480
Pipeline transportation	160			130			125
Other revenues	6			18			—
Total Terminalling and Transportation	1,054			838			605
Gathering and Processing:
NGL sales	436			369			103
Gas gathering and processing	330			333			264
Crude oil and water gathering	336			262			582
Pass-thru and other	161			165			115
Total Gathering and Processing	1,263			1,129			1,064
Wholesale:
Fuel sales (b)	46			1,267			—
Other wholesale	33			15			—
Total Wholesale	79			1,282			—
Intersegment wholesale revenues	(16		)	—			—
Total Segment Revenues	$	2,380		$	3,249		$	1,669

Segment Operating Income
Terminalling and Transportation	$	498		$	397		$	240
Gathering and Processing	310			245			235
Wholesale	27			15			—
Total Segment Operating Income	835			657			475
Unallocated general and administrative expenses	(39		)	(54		)	(27		)
Operating Income	796			603			448
Interest and financing costs, net	(233		)	(330		)	(195		)
Equity in earnings of equity method investments	31			22			13
Other income, net	6			11			11
Net Earnings	$	600		$	306		$	277

Depreciation and Amortization Expense
Terminalling and Transportation	$	144		$	117		$	95
Gathering and Processing	213			191			138
Wholesale	11			5			—
Total Depreciation and Amortization Expense	$	368		$	313		$	233

Capital Expenditures
Terminalling and Transportation	$	205		$	188		$	193
Gathering and Processing	545			175			119
Wholesale	1			—			—
Total Capital Expenditures	$	751		$	363		$	312


(a)	Adjusted to include the historical results of the Predecessors. See Notes 1 and 2 for further discussion.


(b)	The presentation of wholesale fuel sales was impacted by adoption of ASC 606 on January 1, 2018. Beginning January 1, 2018, the revenues and costs associated with our fuel purchase and supply arrangements were netted.

Total Identifiable Assets by Operating Segment (in millions)



	December 31,
	2018		2017 (a)
Identifiable Assets
Terminalling and Transportation	$	3,458	$	3,045
Gathering and Processing	6,488		6,006
Wholesale	255		342
Other	94		112
Total Identifiable Assets	$	10,295	$	9,505


(a)	Adjusted to include the historical results of the Predecessors. See Notes 1 and 2 for further discussion.