Our reportable business segments are based on the way management organizes the enterprise. Each of our reportable business segments represent a component of the enterprise that engages in a separate business activity and for which discrete financial information is available.

•Terminals - the ownership and operation of liquid product merchant storage and rail terminals in the Edmonton, Alberta market as well as a predominantly dry cargo import/export facility in North Vancouver, B.C. Certain Edmonton South Terminal tanks that are owned by TMPL were included in the Trans Mountain Asset Group and continue to be leased to Terminals segment; and

•Pipelines - the ownership and operation of Cochin, a 12-inch diameter multi-product pipeline which spans approximately 1,000 kilometers in Saskatchewan and Alberta and Jet Fuel serving Vancouver International Airport.

We evaluate the performance of our reportable business segments by evaluating our Segment earnings before depreciation and amortization expenses (“Segment EBDA”). We believe that Segment EBDA is a useful measure of our operating performance because it measures segment operating results before D&A and certain expenses that are generally not controllable by the operating managers of our respective business segments, such as general and administrative expense, interest expense, income tax expense and prior to May 2017, the foreign exchange losses (or gains) on the KMI Loans. Our

general and administrative expenses include such items as employee benefits, insurance, rentals, certain litigation and shared corporate services including accounting, information technology, human resources and legal services.

We consider each period’s earnings before all non-cash D&A expenses to be an important measure of business segment performance for our reporting segments. We account for intersegment sales at market prices, while we account for asset transfers at either market value or, in some instances, book value. Intercompany transactions are eliminated in consolidation.


Year Ended December 31,	2018	2017	2016
(In millions of Canadian dollars)
Revenues
Terminals	321.6	298.6	287.5
Pipelines	62.2	60.3	60.3
Total consolidated revenues	383.8	358.9	347.8


Year Ended December 31,	2018	2017	2016
(In millions of Canadian dollars)
Operating expenses(a)
Terminals	137.6	136.9	129.6
Pipelines	23.1	32.3	30.5
Total consolidated operating expenses	160.7	169.2	160.1


Year Ended December 31,	2018	2017	2016
(In millions of Canadian dollars)
Other operating expense (income)
Terminals	(9.3)	3.1	0.2
Pipelines	—	0.3	—
Total consolidated other expense (income)	(9.3)	3.4	0.2


Year Ended December 31,	2018	2017	2016
(In millions of Canadian dollars)
D&A
Terminals	78.5	65.7	60.2
Pipelines	4.1	6.0	4.0


Total consolidated D&A	82.6	71.7	64.2


Year Ended December 31,	2018	2017	2016
(In millions of Canadian dollars)
Other expense (income) net of foreign exchange loss, net(b)
Terminals	0.1	(4.2)	(1.5)
Pipelines	0.1	8.6	—
Total consolidated other expense (income) net of foreign exchange loss	0.2	4.4	(1.5)


Year Ended December 31,	2018	2017	2016
(In millions of Canadian dollars)
Segment EBDA(a)(b)
Terminals	193.2	162.8	159.2
Pipelines	39.0	19.1	29.8
Total Segment EBDA	232.2	181.9	189.0
D&A	(82.6)	(71.7)	(64.2)
Foreign exchange gain on KMI Loans(c)	—	0.2	13.2
General and administrative	(39.0)	(30.9)	(25.7)
Interest income (expense), net	27.2	(8.2)	(18.5)
Income tax expense	(37.8)	(20.8)	(23.4)
Income from Continuing Operations	100.0	50.5	70.4
Income from Discontinued Operations, Net of Tax	1,318.2	110.2	131.4
Net Income	1,418.2	160.7	201.8


Year Ended December 31,	2018	2017	2016
(In millions of Canadian dollars)
Capital expenditures
Terminals	100.4	172.9	97.4
Pipelines	1.4	7.1	6.3
Discontinued Operations	426.6	438.5	165.4
Total consolidated capital expenditures	528.4	618.5	269.1


December 31,	2018	2017
(In millions of Canadian dollars)
Assets
Terminals	974.2	863.0
Pipelines	4,395.4	346.6
Assets Held for Sale	—	3,243.1
Total consolidated assets	5,369.6	4,452.7

b.Segment EBDA for the years ended December 31, 2018, 2017 and 2016 includes $0.1 million, $(5.3) million and $1.4 million, respectively, of foreign exchange gain (losses) due to changes in exchange rates between our Canadian dollar and the U.S. dollar on U.S. dollar denominated balances.

c.The KMI Loans, which represented U.S. dollar denominated long-term notes payable to Kinder Morgan, were settled with proceeds from our IPO.