(13) 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”), 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, Oklahoma, 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, property, and equipment, including software, for general corporate support, debt financing costs, and unconsolidated affiliate investments in GCF and the Cedar Cove JV.

Based on the disclosure requirements of ASC 606, we are presenting revenues disaggregated based on the type of good or service in order to more fully depict the nature of our revenues. As we adopted ASC 606 using the modified retrospective method, only the consolidated statement of operations and revenue disaggregation information for the three and six months ended June 30, 2018 are presented to conform to ASC 606 accounting and disclosure requirements. Prior periods presented in the consolidated financial statements and accompanying notes were not restated in accordance with ASC 606.

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 June 30, 2018
Natural gas sales	$	56.8		$	122.7		$	37.9		$	—		$	—		$	217.4
NGL sales	—			627.9			3.6			0.3			—			631.8
Crude oil and condensate sales	—			0.1			—			585.8			—			585.9
Product sales	56.8			750.7			41.5			586.1			—			1,435.1
Natural gas sales—related parties	—			—			1.9			—			—			1.9
NGL sales—related parties	134.3			28.9			140.4			—			(278.6		)	25.0
Crude oil and condensate sales—related parties	15.1			0.1			23.6			1.7			(40.2		)	0.3
Product sales—related parties	149.4			29.0			165.9			1.7			(318.8		)	27.2
Gathering and transportation	13.5			16.7			25.6			0.9			—			56.7
Processing	9.5			1.1			47.4			—			—			58.0
NGL services	—			10.3			—			—			—			10.3
Crude services	—			—			(0.1		)	15.1			—			15.0
Other services	2.2			0.2			—			—			—			2.4
Midstream services	25.2			28.3			72.9			16.0			—			142.4
Gathering and transportation—related parties	61.4			—			38.7			—			—			100.1
Processing—related parties	46.8			—			23.1			—			—			69.9
Crude services—related parties	—			—			0.7			4.3			—			5.0
Other services—related parties	0.2			—			—			—			—			0.2
Midstream services—related parties	108.4			—			62.5			4.3			—			175.2
Revenue from contracts with customers	339.8			808.0			342.8			608.1			(318.8		)	1,779.9
Cost of sales	(178.7		)	(723.0		)	(170.3		)	(572.4		)	318.8			(1,325.6		)
Operating expenses	(45.8		)	(28.0		)	(20.8		)	(18.8		)	—			(113.4		)
Loss on derivative activity	—			—			—			—			(15.2		)	(15.2		)
Segment profit (loss)	$	115.3		$	57.0		$	151.7		$	16.9		$	(15.2	)	$	325.7
Depreciation and amortization	$	(53.4	)	$	(30.5	)	$	(46.4	)	$	(12.7	)	$	(2.3	)	$	(145.3	)
Goodwill	$	232.0		$	—		$	190.3		$	—		$	1,119.9		$	1,542.2
Capital expenditures	$	44.7		$	16.6		$	121.0		$	34.9		$	1.0		$	218.2

Three Months Ended June 30, 2017
Product sales	$	74.6		$	548.7		$	27.7		$	276.2		$	—		$	927.2
Product sales—related parties	115.5			5.4			62.4			—			(154.0		)	29.3
Midstream services	28.2			56.3			33.0			14.4			—			131.9
Midstream services—related parties	107.2			35.3			59.4			5.3			(33.6		)	173.6
Cost of sales	(177.0		)	(575.7		)	(99.0		)	(268.3		)	187.6			(932.4		)
Operating expenses	(42.9		)	(24.6		)	(14.7		)	(20.4		)	—			(102.6		)
Gain on derivative activity	—			—			—			—			1.6			1.6
Segment profit	$	105.6		$	45.4		$	68.8		$	7.2		$	1.6		$	228.6
Depreciation and amortization	$	(59.6	)	$	(29.4	)	$	(38.6	)	$	(12.6	)	$	(2.3	)	$	(142.5	)
Goodwill	$	232.0		$	—		$	190.3		$	—		$	1,119.9		$	1,542.2
Capital expenditures	$	39.7		$	15.6		$	135.0		$	13.7		$	14.5		$	218.5



	Texas			Louisiana			Oklahoma			Crude and Condensate			Corporate			Totals

Six Months Ended June 30, 2018
Natural gas sales	$	139.8		$	247.7		$	86.0		$	—		$	—		$	473.5
NGL sales	—			1,236.3			5.5			0.8			—			1,242.6
Crude oil and condensate sales	—			0.1			—			1,218.1			—			1,218.2
Product sales	139.8			1,484.1			91.5			1,218.9			—			2,934.3
Natural gas sales—related parties	—			—			2.4			—			—			2.4
NGL sales—related parties	227.3			34.5			240.5			—			(474.9		)	27.4
Crude oil and condensate sales—related parties	26.0			0.2			45.9			1.8			(72.9		)	1.0
Product sales—related parties	253.3			34.7			288.8			1.8			(547.8		)	30.8
Gathering and transportation	26.7			34.3			41.2			1.7			—			103.9
Processing	13.3			1.7			56.4			—			—			71.4
NGL services	—			26.9			—			—			—			26.9
Crude services	—			—			—			27.9			—			27.9
Other services	4.0			0.4			—			0.1			—			4.5
Midstream services	44.0			63.3			97.6			29.7			—			234.6
Gathering and transportation—related parties	114.0			—			73.4			—			—			187.4
Processing—related parties	98.4			—			45.2			—			—			143.6
Crude services—related parties	—			—			1.4			8.6			—			10.0
Other services—related parties	0.4			—			—			—			—			0.4
Midstream services—related parties	212.8			—			120.0			8.6			—			341.4
Revenue from contracts with customers	649.9			1,582.1			597.9			1,259.0			(547.8		)	3,541.1
Cost of sales	(340.2		)	(1,409.7		)	(309.3		)	(1,195.7		)	547.8			(2,707.1		)
Operating expenses	(90.0		)	(53.6		)	(41.5		)	(37.5		)	—			(222.6		)
Loss on derivative activity	—			—			—			—			(14.7		)	(14.7		)
Segment profit (loss)	$	219.7		$	118.8		$	247.1		$	25.8		$	(14.7	)	$	596.7
Depreciation and amortization	$	(105.9	)	$	(59.7	)	$	(88.5	)	$	(25.1	)	$	(4.2	)	$	(283.4	)
Goodwill	$	232.0		$	—		$	190.3		$	—		$	1,119.9		$	1,542.2
Capital expenditures	$	110.0		$	23.4		$	219.5		$	44.2		$	2.3		$	399.4

Six Months Ended June 30, 2017
Product sales	$	159.7		$	1,093.2		$	42.2		$	622.1		$	—		$	1,917.2
Product sales—related parties	222.0			15.6			126.8			0.8			(293.2		)	72.0
Midstream services	56.0			109.4			60.9			33.0			—			259.3
Midstream services—related parties	212.3			64.3			108.8			8.6			(61.4		)	332.6
Cost of sales	(356.2		)	(1,140.4		)	(187.7		)	(605.0		)	354.6			(1,934.7		)
Operating expenses	(86.8		)	(50.0		)	(28.8		)	(41.1		)	—			(206.7		)
Gain on derivative activity	—			—			—			—			4.4			4.4
Segment profit	$	207.0		$	92.1		$	122.2		$	18.4		$	4.4		$	444.1
Depreciation and amortization	$	(109.4	)	$	(57.5	)	$	(75.1	)	$	(24.1	)	$	(4.7	)	$	(270.8	)
Impairments	$	—		$	—		$	—		$	(7.0	)	$	—		$	(7.0	)
Goodwill	$	232.0		$	—		$	190.3		$	—		$	1,119.9		$	1,542.2
Capital expenditures	$	68.0		$	48.3		$	275.7		$	51.1		$	23.5		$	466.6

The table below represents information about segment assets as of June 30, 2018 and December 31, 2017 (in millions):



Segment Identifiable Assets:	June 30, 2018		December 31, 2017
Texas	$	3,139.3	$	3,094.8
Louisiana	2,391.1		2,408.5
Oklahoma	2,993.8		2,836.7
Crude and Condensate	1,005.0		929.5
Corporate	1,254.4		1,268.3
Total identifiable assets	$	10,783.6	$	10,537.8

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Segment profit	$	325.7		$	228.6		$	596.7		$	444.1
General and administrative expenses	(30.4		)	(31.1		)	(57.9		)	(67.2		)
Gain (loss) on disposition of assets	(1.2		)	5.4			(1.3		)	0.3
Depreciation and amortization	(145.3		)	(142.5		)	(283.4		)	(270.8		)
Impairments	—			—			—			(7.0		)
Gain on litigation settlement	—			8.5			—			26.0
Operating income	$	148.8		$	68.9		$	254.1		$	125.4