Segment Information (Notes)

3 Months Ended

Mar. 31, 2016

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 for Western's 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 685 miles of pipeline; 31 crude oil storage tanks with a total combined active shell storage capacity of 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 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, refined product, asphalt 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.

Activities of our business that are not included in the two segments mentioned above are included in the Other category. Other activities consist primarily of corporate staff operations and 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 and other long-term assets.

Disclosures regarding our reportable segments with reconciliations to consolidated totals for the three months ended March 31, 2016 and 2015, are presented below:

	Three Months Ended
	March 31,
	2016			2015
	(In thousands)
Operating Results:
Logistics:
Revenues: Affiliate	$	40,916		$	34,775
Revenues: Third-party	690			623
Total revenues	41,606			35,398
Wholesale:
Revenues: Affiliate	108,541			143,474
Revenues: Third-party	317,892			428,524
Total revenues	426,433			571,998
Consolidated revenues	$	468,039		$	607,396
Operating income (loss):
Logistics	$	13,930		$	11,352
Wholesale	9,953			8,989
Other	(2,445		)	(2,780		)
Operating income from segments	21,438			17,561
Other income (expense), net	(7,170		)	(3,947		)
Consolidated income before income taxes	$	14,268		$	13,614
Depreciation and amortization:
Logistics	$	5,961		$	4,815
Wholesale	1,183			1,077
Consolidated depreciation and amortization	$	7,144		$	5,892
Capital expenditures:
Logistics	$	5,869		$	23,597
Wholesale	372			3,047
Consolidated capital expenditures	$	6,241		$	26,644
Total assets:
Logistics	$	308,490		$	284,062
Wholesale	151,323			180,085
Other	27,513			86,496
Consolidated total assets	$	487,326		$	550,643