(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 Permian Basin primarily in West Texas (“Texas”), the natural gas pipelines, processing plants, storage facilities, NGL pipelines and fractionation 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 segment profits.

Corporate assets consist primarily of cash, goodwill, 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 December 31, 2017 and 2016. As of December 31, 2016, our Corporate assets included our unconsolidated affiliate investment in HEP. In December 31, 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
Year Ended December 31, 2017:
Product sales	$	325.0		$	2,529.6		$	128.8		$	1,375.0		$	—		$	4,358.4
Product sales—related parties	500.3			45.0			349.4			0.8			(750.6		)	144.9
Midstream services	116.3			220.6			155.0			60.4			—			552.3
Midstream services—related parties	424.3			136.4			241.6			17.4			(131.5		)	688.2
Cost of sales	(772.3		)	(2,618.1		)	(522.9		)	(1,330.3		)	882.1			(4,361.5		)
Operating expenses	(172.7		)	(101.3		)	(64.6		)	(80.1		)	—			(418.7		)
Loss on derivative activity	—			—			—			—			(4.2		)	(4.2		)
Segment profit (loss)	$	420.9		$	212.2		$	287.3		$	43.2		$	(4.2	)	$	959.4
Depreciation and amortization	$	(215.2	)	$	(116.1	)	$	(156.6	)	$	(47.5	)	$	(9.9	)	$	(545.3	)
Impairments	$	—		$	(0.8	)	$	—		$	(16.3	)	$	—		$	(17.1	)
Goodwill	$	232.0		$	—		$	190.3		$	—		$	1,119.9		$	1,542.2
Capital expenditures	$	145.4		$	75.1		$	442.1		$	79.1		$	26.4		$	768.1
Total assets	$	3,094.8		$	2,408.5		$	2,836.7		$	929.5		$	1,268.3		$	10,537.8



	Texas			Louisiana			Oklahoma			Crude and Condensate			Corporate			Totals
Year Ended December 31, 2016:
Product sales	$	237.2		$	1,632.5		$	48.5		$	1,090.7		$	—		$	3,008.9
Product sales—related parties	287.6			57.8			120.4			1.5			(333.0		)	134.3
Midstream services	104.2			215.4			82.2			65.4			—			467.2
Midstream services—related parties	439.3			95.8			185.9			18.9			(86.8		)	653.1
Cost of sales	(483.4		)	(1,729.0		)	(184.9		)	(1,038.0		)	419.8			(3,015.5		)
Operating expenses	(168.5		)	(96.6		)	(52.1		)	(81.3		)	—			(398.5		)
Loss on derivative activity	—			—			—			—			(11.1		)	(11.1		)
Segment profit (loss)	$	416.4		$	175.9		$	200.0		$	57.2		$	(11.1	)	$	838.4
Depreciation and amortization	$	(196.9	)	$	(114.8	)	$	(140.6	)	$	(42.4	)	$	(9.2	)	$	(503.9	)
Impairments	$	(473.1	)	$	—		$	—		$	(93.2	)	$	(307.0	)	$	(873.3	)
Goodwill	$	232.0		$	—		$	190.3		$	—		$	1,119.9		$	1,542.2
Capital expenditures	$	217.9		$	79.1		$	295.7		$	74.3		$	9.1		$	676.1
Total assets	$	3,142.6		$	2,349.3		$	2,524.5		$	836.8		$	1,422.7		$	10,275.9



	Texas			Louisiana			Oklahoma			Crude and Condensate			Corporate			Totals
Year Ended December 31, 2015:
Product sales	$	320.0		$	1,527.7		$	5.0		$	1,401.0		$	—		$	3,253.7
Product sales—related parties	123.3			48.5			13.0			0.8			(66.2		)	119.4
Midstream services	100.2			244.1			28.3			78.4			—			451.0
Midstream services—related parties	456.7			20.0			140.7			18.0			(16.8		)	618.6
Cost of sales	(412.2		)	(1,567.6		)	(17.9		)	(1,330.6		)	83.0			(3,245.3		)
Operating expenses	(181.8		)	(105.9		)	(30.3		)	(101.9		)	—			(419.9		)
Gain on derivative activity	—			—			—			—			9.4			9.4
Segment profit	$	406.2		$	166.8		$	138.8		$	65.7		$	9.4		$	786.9
Depreciation and amortization	$	(169.7	)	$	(109.1	)	$	(49.8	)	$	(51.5	)	$	(7.2	)	$	(387.3	)
Impairments	$	(496.3	)	$	(787.3	)	$	(0.6	)	$	(279.2	)	$	—		$	(1,563.4	)
Goodwill	$	703.5		$	—		$	190.3		$	93.2		$	1,426.9		$	2,413.9
Capital expenditures	$	268.0		$	59.2		$	40.7		$	187.5		$	15.1		$	570.5
Total assets	$	3,709.5		$	2,309.3		$	873.4		$	898.0		$	1,751.1		$	9,541.3

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



	Year Ended December 31,
	2017			2016			2015
Segment profits	$	959.4		$	838.4		$	786.9
General and administrative expenses	(128.6		)	(122.5		)	(136.9		)
Depreciation and amortization	(545.3		)	(503.9		)	(387.3		)
Loss on disposition of assets	—			(13.2		)	(1.2		)
Impairments	(17.1		)	(873.3		)	(1,563.4		)
Gain on litigation settlement	26.0			—			—
Operating income (loss)	$	294.4		$	(674.5	)	$	(1,301.9	)