(16) Segment Information

Identification of the majority of our operating segments is based principally upon geographic regions served and the nature of operating activity. Our reportable segments consist of the following: natural gas gathering, processing, transmission and fractionation operations located in north Texas and the Midland and Delaware basins in west Texas (“Texas”), the pipelines, processing plants, storage facilities and NGL assets in Louisiana (“Louisiana”), natural gas gathering and processing operations located throughout Oklahoma (“Oklahoma”) and crude rail, truck, pipeline and barge facilities in west Texas, south Texas, Louisiana and the Ohio River Valley (“Crude and Condensate”). Operating activity for intersegment eliminations is shown in the Corporate segment. Our sales are derived from external domestic customers. We evaluate the performance of our operating segments based on operating revenues and segment profits.

Corporate assets consist primarily of cash, property and equipment, including software, for general corporate support, debt financing costs and unconsolidated affiliate investments in GCF and the Cedar Cove JV as of September 30, 2017 and December 31, 2016. As of December 31, 2016, our Corporate assets included our unconsolidated affiliate investment in HEP. In December 2016, we entered into an agreement to sell our ownership interest in HEP, and we finalized the sale in March 2017.

Summarized financial information for our reportable segments is shown in the following tables (in millions):



	Texas			Louisiana			Oklahoma			Crude and Condensate			Corporate			Totals
Three Months Ended September 30, 2017
Product sales	$	80.8		$	642.3		$	42.5		$	291.1		$	—		$	1,056.7
Product sales—related parties	130.6			10.0			94.6			—			(199.9		)	35.3
Midstream services	29.1			50.3			44.3			12.7			—			136.4
Midstream services—related parties	106.7			35.9			63.0			4.8			(35.4		)	175.0
Cost of sales	(198.5		)	(662.7		)	(148.2		)	(279.1		)	235.3			(1,053.2		)
Operating expenses	(41.1		)	(24.8		)	(17.1		)	(19.1		)	—			(102.1		)
Loss on derivative activity	—			—			—			—			(5.5		)	(5.5		)
Segment profit (loss)	$	107.6		$	51.0		$	79.1		$	10.4		$	(5.5	)	$	242.6
Depreciation and amortization	$	(52.5	)	$	(29.3	)	$	(40.2	)	$	(11.7	)	$	(2.6	)	$	(136.3	)
Impairments	$	—		$	—		$	—		$	(1.8	)	$	—		$	(1.8	)
Goodwill	$	232.0		$	—		$	190.3		$	—		$	1,119.9		$	1,542.2
Capital expenditures	$	39.1		$	7.5		$	107.7		$	13.3		$	2.1		$	169.7

Three Months Ended September 30, 2016
Product sales	$	61.3		$	430.9		$	16.2		$	262.6		$	—		$	771.0
Product sales—related parties	81.9			24.4			36.0			—			(99.2		)	43.1
Midstream services	27.5			57.2			24.2			16.8			—			125.7
Midstream services—related parties	109.5			29.9			47.7			5.2			(27.0		)	165.3
Cost of sales	(134.1		)	(471.5		)	(58.3		)	(250.5		)	126.2			(788.2		)
Operating expenses	(42.9		)	(23.5		)	(12.6		)	(19.0		)	—			(98.0		)
Loss on derivative activity	—			—			—			—			(0.5		)	(0.5		)
Segment profit (loss)	$	103.2		$	47.4		$	53.2		$	15.1		$	(0.5	)	$	218.4
Depreciation and amortization	$	(48.7	)	$	(28.8	)	$	(35.6	)	$	(10.7	)	$	(2.4	)	$	(126.2	)
Goodwill	$	232.0		$	—		$	190.3		$	—		$	1,119.9		$	1,542.2
Capital expenditures	$	51.8		$	15.4		$	58.3		$	12.8		$	8.6		$	146.9



	Texas			Louisiana			Oklahoma			Crude and Condensate			Corporate			Totals
Nine Months Ended September 30, 2017
Product sales	$	240.5		$	1,735.5		$	84.7		$	913.2		$	—		$	2,973.9
Product sales—related parties	352.6			25.6			221.4			0.8			(493.1		)	107.3
Midstream services	85.1			159.7			105.2			45.7			—			395.7
Midstream services—related parties	319.0			100.2			171.8			13.4			(96.8		)	507.6
Cost of sales	(554.7		)	(1,803.1		)	(335.9		)	(884.1		)	589.9			(2,987.9		)
Operating expenses	(127.9		)	(74.8		)	(45.9		)	(60.2		)	—			(308.8		)
Loss on derivative activity	—			—			—			—			(1.1		)	(1.1		)
Segment profit (loss)	$	314.6		$	143.1		$	201.3		$	28.8		$	(1.1	)	$	686.7
Depreciation and amortization	$	(161.9	)	$	(86.8	)	$	(115.3	)	$	(35.8	)	$	(7.3	)	$	(407.1	)
Impairments	$	—		$	—		$	—		$	(8.8	)	$	—		$	(8.8	)
Goodwill	$	232.0		$	—		$	190.3		$	—		$	1,119.9		$	1,542.2
Capital expenditures	$	107.1		$	55.8		$	383.4		$	64.4		$	25.6		$	636.3

Nine Months Ended September 30, 2016
Product sales	$	165.7		$	1,118.1		$	32.9		$	781.1		$	—		$	2,097.8
Product sales—related parties	191.9			47.0			69.1			1.1			(209.8		)	99.3
Midstream services	78.1			165.1			57.3			48.0			—			348.5
Midstream services—related parties	331.7			68.1			134.4			14.4			(60.1		)	488.5
Cost of sales	(329.0		)	(1,199.1		)	(109.2		)	(739.4		)	269.9			(2,106.8		)
Operating expenses	(125.2		)	(72.2		)	(37.2		)	(61.7		)	—			(296.3		)
Loss on derivative activity	—			—			—			—			(6.6		)	(6.6		)
Segment profit (loss)	$	313.2		$	127.0		$	147.3		$	43.5		$	(6.6	)	$	624.4
Depreciation and amortization	$	(143.6	)	$	(86.7	)	$	(104.2	)	$	(31.7	)	$	(6.8	)	$	(373.0	)
Impairments	$	(473.1	)	$	—		$	—		$	(93.2	)	$	(307.0	)	$	(873.3	)
Goodwill	$	232.0		$	—		$	190.3		$	—		$	1,119.9		$	1,542.2
Capital expenditures	$	132.3		$	52.2		$	190.6		$	17.0		$	15.4		$	407.5

The table below represents information about segment assets as of September 30, 2017 and December 31, 2016 (in millions):



Segment Identifiable Assets:	September 30, 2017		December 31, 2016
Texas	$	3,113.0	$	3,142.6
Louisiana	2,395.5		2,349.3
Oklahoma	2,814.7		2,524.5
Crude and Condensate	847.2		836.8
Corporate	1,377.9		1,422.7
Total identifiable assets	$	10,548.3	$	10,275.9

The following table reconciles the segment profits reported above to the operating income (loss) as reported on the consolidated statements of operations (in millions):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Segment profits	$	242.6		$	218.4		$	686.7		$	624.4
General and administrative expenses	(31.3		)	(29.3		)	(98.5		)	(94.7		)
Gain (loss) on disposition of assets	(1.1		)	3.0			(0.8		)	2.9
Depreciation and amortization	(136.3		)	(126.2		)	(407.1		)	(373.0		)
Impairments	(1.8		)	—			(8.8		)	(873.3		)
Gain on litigation settlement	—			—			26.0			—
Operating income (loss)	$	72.1		$	65.9		$	197.5		$	(713.7	)