Segment Reporting

6 Months Ended

Jun. 30, 2018

Historically, our three reporting segments have been: (i) crude oil marketing, transportation and storage, (ii) tank truck transportation of liquid chemicals and dry bulk and ISO tank container storage and transportation, and (iii) upstream crude oil and natural gas exploration and production. Our upstream crude oil and natural gas exploration and production wholly owned subsidiary filed for bankruptcy in April 2017, and as a result of our loss of control of the wholly owned subsidiary, AREC was deconsolidated and is accounted for under the cost method of accounting. AREC remained a reportable segment until its deconsolidation, effective April 30, 2017.

Information concerning our various business activities was as follows for the periods indicated (in thousands):


	Reporting Segments
	Marketing		Transportation		Oil and Gas		Total

Three Months Ended June 30, 2018
Revenues	$	438,791	$	13,626	$	—	$	452,417
Segment operating (losses) earnings ⁽¹⁾	5,772		810		—		6,582
Depreciation, depletion and amortization	1,336		926		—		2,262
Property and equipment additions ⁽²⁾	277		1,572		—		1,849

Three Months Ended June 30, 2017
Revenues	$	301,176	$	13,616	$	410	$	315,202
Segment operating (losses) earnings ⁽¹⁾	1,691		293		95		2,079
Depreciation, depletion and amortization	1,977		1,472		114		3,563
Property and equipment additions	191		(92)		1,003		1,102

Six Months Ended June 30, 2018
Revenues	$	812,429	$	27,244	$	—	$	839,673
Segment operating (losses) earnings ⁽¹⁾	8,730		1,212		—		9,942
Depreciation, depletion and amortization	2,833		1,841		—		4,674
Property and equipment additions ⁽²⁾	1,070		1,645		—		2,715

Six Months Ended June 30, 2017
Revenues	$	589,791	$	27,071	$	1,427	$	618,289
Segment operating (losses) earnings ⁽¹⁾	3,084		(5)		53		3,132
Depreciation, depletion and amortization	4,046		3,063		423		7,532
Property and equipment additions	273		10		1,825		2,108

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(1) Our marketing segment’s operating earnings included inventory liquidation gains of $1.9 million and $2.5 million for the three and six months ended June 30, 2018, respectively, and inventory valuation losses of $1.4 million and $2.1 million for the three and six months ended June 30, 2017, respectively.

(2) During the six months ended June 30, 2018, we had $13 thousand of property and equipment additions for leasehold improvements at our corporate headquarters level, which is not attributed or allocated to any of our reporting segments.

Segment operating earnings reflect revenues net of operating costs and depreciation, depletion and amortization expense and are reconciled to earnings (losses) before income taxes, as follows for the periods indicated (in thousands):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018		2017		2018		2017

Segment operating earnings	$	6,582	$	2,079	$	9,942	$	3,132
General and administrative	(2,284)		(1,460)		(4,567)		(4,097)
Operating earnings (losses)	4,298		619		5,375		(965)
Loss on deconsolidation of subsidiary	—		(1,635)		—		(1,635)


Interest income	498		260		885		419
Interest expense	(15)		(1)		(34)		(2)
(Losses) earnings before income taxes	$	4,781	$	(757)	$	6,226	$	(2,183)

Identifiable assets by industry segment were as follows at the dates indicated (in thousands):


	June 30,		December 31,
	2018		2017

Reporting segment:
Marketing	$	139,687	$	134,745
Transportation	28,803		29,069
Oil and Gas ⁽¹⁾	425		425
Cash and other assets	134,212		118,465
Total assets	$	303,127	$	282,704

____________________

(1) Amounts represent our cost method investment in this segment.

Intersegment sales are insignificant. Other identifiable assets are primarily corporate cash, corporate accounts receivable, investments and properties not identified with any specific segment of our business. Accounting policies for transactions between reportable segments are consistent with applicable accounting policies as disclosed herein.