Segment Information (Notes)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

4. Segment Information

Our operations are organized into two operating segments based on marketing criteria and the nature of our products and services and our types of customers. These segments are logistics and wholesale.

Logistics. Our pipeline and gathering assets are positioned to support crude oil supply options for Western’s El Paso and Gallup Refineries as well as third parties and consist of crude oil pipelines and gathering assets located primarily in the Delaware Basin and in the Four Corners area of Northwestern New Mexico. These systems gather and transport crude oil by pipeline from various production locations to Western’s refineries utilizing approximately 300 miles of pipeline; 29 crude oil storage tanks with a total combined active shell storage capacity of 620,000 barrels; eight truck loading and unloading locations; and 14 pump stations.

Our terminalling, transportation and storage assets support crude oil supply and refined product distribution for Western’s El Paso and Gallup Refineries as well as third parties and primarily consist of storage tanks, terminals, transportation and other assets located in El Paso, Texas, Gallup, Bloomfield and Albuquerque, New Mexico and Phoenix and Tucson, Arizona. These assets include crude oil, feedstock, blendstock, refined product and asphalt storage tanks with a total combined shell storage capacity of 7.4 million barrels; truck loading racks; railcar loading racks; pump stations and pipeline and related logistics assets to service Western’s operations.

Wholesale. Our wholesale segment includes the operations of several lubricant and bulk petroleum distribution plants and a fleet of crude oil and refined product and lubricant delivery trucks. Our wholesale segment distributes commercial wholesale petroleum products primarily in Arizona, California, Colorado, Nevada, New Mexico and Texas. The wholesale segment purchases petroleum fuels and lubricants from Western's refining segment and from third-party suppliers.

Segment Accounting Principles. Operating income for each segment consists of net revenues less cost of products sold; direct operating expenses; selling, general and administrative expenses; net impact of the disposal of assets and depreciation and amortization.

Activities of our business that are not included in the two segments mentioned above are included in the "Other" category. These activities consist primarily of corporate staff operations and other items that are not specific to the normal business of any one of our two operating segments.

The total assets of each segment consist primarily of cash and cash equivalents; inventories; net accounts receivable; net property, plant and equipment; net intangible assets and net other assets directly associated with the individual segment’s operations. Included in the total assets of the corporate operations are cash and cash equivalents; various net accounts receivable; prepaid expenses and other long-term assets.

We recorded the acquisition of WRW's assets at Western's historical book value as the purchase was considered a reorganization of entities under common control. The information contained herein for WNRL has been retrospectively adjusted to include the historical results of the WRW assets acquired for periods prior to the effective date of the transaction. Our financial information includes the historical results of WNRL that we have retrospectively adjusted due to the Wholesale Acquisition.

Disclosures regarding our reportable segments with reconciliations to consolidated totals for the three and six months ended June 30, 2015 and 2014, are presented below:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
	(In thousands)
Operating Results:
Logistics
Revenues: Affiliate	$	34,876		$	34,324		$	69,651		$	66,380
Revenues: Third-party	679			657			1,302			1,358
Total revenues	$	35,555		$	34,981		$	70,953		$	67,738
Wholesale
Revenues: Affiliate	$	175,762		$	239,397		$	319,236		$	443,925
Revenues: Third-party	523,184			695,959			951,708			1,323,284
Total revenues	$	698,946		$	935,356		$	1,270,944		$	1,767,209
Consolidated revenues	$	734,501		$	970,337		$	1,341,897		$	1,834,947
Operating income (loss)
Logistics	$	13,236		$	12,944		$	26,476		$	25,795
Wholesale	12,171			6,625			21,160			12,744
Other	(3,114		)	(2,095		)	(5,870		)	(4,304		)
Operating income from segments	22,293			17,474			41,766			34,235
Other income (expense), net	(6,230		)	(329		)	(10,177		)	(647		)
Consolidated income before income taxes	$	16,063		$	17,145		$	31,589		$	33,588
Depreciation and amortization
Logistics	$	3,630		$	3,467		$	7,291		$	6,711
Wholesale	1,107			987			2,184			1,895
Consolidated depreciation and amortization	$	4,737		$	4,454		$	9,475		$	8,606
Capital expenditures
Logistics	$	6,851		$	2,773		$	12,366		$	8,677
Wholesale	999			935			4,046			3,410
Consolidated capital expenditures	$	7,850		$	3,708		$	16,412		$	12,087
Total assets
Logistics							$	167,210		$	149,122
Wholesale							185,523			63,808
Other							88,884			95,607
Consolidated total assets							$	441,617		$	308,537