Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

5. Segment Information

We recorded the acquisition of WRW's assets and the TexNew Mex Pipeline System at Western's historical book value as the purchases were considered a reorganization of entities under common control. The financial position, results of operations and operating statistics of our accounting predecessor for the contributed logistics assets for periods prior to October 16, 2013 are contained herein. In addition, our accounting predecessor contains the financial position and results of operations of the TexNew Mex Pipeline System assets that were not contributed at the time of the Offering. We refer to the financial position, results of operations and operating statistics of these contributed and non-contributed assets, for periods prior to October 16, 2013 as the "WNRL Predecessor."

The information contained herein for the WNRL Predecessor and WNRL has been retrospectively adjusted to include the historical results of the WRW assets acquired for periods prior to the effective date of the Wholesale Acquisition. We refer to the collective entity of the WNRL Predecessor with the retrospective adjustment for the Wholesale Acquisition as our "Predecessor" for periods prior to October 16, 2013. The results of WNRL contain the retrospective adjustment for the Wholesale Acquisition and the TexNew Mex Pipeline Acquisition beginning October 16, 2013, the date WNRL commenced operations. Because the WNRL Predecessor has always contained the financial position and results of operations and operating statistics of the TexNew Mex Pipeline System, the retrospective adjustments related to the TexNew Mex Pipeline Acquisition are applied to WNRL only.

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 strategically positioned to support crude oil supply options for the El Paso refinery and the Gallup refinery 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 685 miles of pipeline; 31 crude oil storage tanks with a total combined active shell storage capacity of approximately 828,000 barrels; eight truck loading and unloading locations; and 15 pump stations.

Our terminalling, transportation and storage assets support crude oil supply and refined product distribution for the El Paso refinery and the Gallup refinery 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 approximately 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; maintenance turnaround expense and depreciation and amortization. Cost of products sold includes net realized and unrealized gains and losses related to our commodity hedging activities and reflects current costs.

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; other current assets; net deferred income tax items; net property, plant and equipment and other long-term assets.

Disclosures regarding our reportable segments with reconciliations to consolidated totals for the three years ended December 31, 2015, are presented below:

	Year Ended
	December 31, 2015			December 31, 2014			December 31, 2013
	(In thousands)
Operating Results:
Logistics:
Revenues: Affiliate	$	161,536		$	137,986		$	29,086
Revenues: Third-party	2,771			2,718			1,743
Total revenues	$	164,307		$	140,704		$	30,829
Wholesale:
Revenues: Affiliate	$	624,787		$	873,589		$	853,447
Revenues: Third-party	1,810,773			2,487,595			2,522,852
Total revenues	$	2,435,560		$	3,361,184		$	3,376,299
Consolidated revenues	$	2,599,867		$	3,501,888		$	3,407,128
Operating income (loss):
Logistics	$	60,898		$	52,809		$	(58,332	)
Wholesale	38,159			28,234			20,790
Other	(12,344		)	(10,748		)	(4,918		)
Operating income	86,713			70,295			(42,460		)
Other income (expense), net	(23,041		)	(2,240		)	(172		)
Consolidated income before income taxes	$	63,672		$	68,055		$	(42,632	)
Depreciation and amortization:
Logistics	$	22,426		$	16,294		$	13,587
Wholesale	4,486			3,893			2,928
Consolidated depreciation and amortization	$	26,912		$	20,187		$	16,515
Capital expenditures:
Logistics	$	56,574		$	71,304		$	73,412
Wholesale	6,421			7,868			11,413
Consolidated capital expenditures	$	62,995		$	79,172		$	84,825

	Year Ended
	December 31, 2015		December 31, 2014		December 31, 2013
	(In thousands)
Total assets:
Logistics	$	304,576	$	273,136	$	295,983
Wholesale	147,597		160,158		61,504
Other	48,778		56,488		—
Consolidated total assets	$	500,951	$	489,782	$	357,487