BUSINESS SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2018

The following tables provide information about our revenue types by reportable segment for the periods indicated (in thousands). Prior periods have been disaggregated for comparison purposes.



	Three Months Ended March 31,
	2018
	Domestic Pipelines & Terminals			Global Marine Terminals		Merchant Services		Intersegment Eliminations			Total
Revenue from contracts with customers
Pipeline transportation	$	121,470		$	—	$	—	$	(3,639	)	$	117,831
Terminalling and storage services	115,976			101,218		—		(8,593		)	208,601
Product sales	—			13		643,508		(3,354		)	640,167
Other services	12,089			21		2,900		(1,347		)	13,663
Total revenue from contracts with customers	249,535			101,252		646,408		(16,933		)	980,262
Revenue from leases	7,990			42,833		—		—			50,823
Revenue from derivatives	(2,090		)	—		152,020		2,090			152,020
Total revenue	$	255,435		$	144,085	$	798,428	$	(14,843	)	$	1,183,105



	Three Months Ended March 31,
	2017
	Domestic Pipelines & Terminals		Global Marine Terminals		Merchant Services		Intersegment Eliminations			Total
Revenue from contracts with customers
Pipeline transportation	$	115,937	$	—	$	—	$	(2,983	)	$	112,954
Terminalling and storage services	109,586		125,732		—		(7,579		)	227,739
Product sales	—		11		444,134		(3,725		)	440,420
Other services	12,991		102		1,992		(1,683		)	13,402
Total revenue from contracts with customers	238,514		125,845		446,126		(15,970		)	794,515
Revenue from leases	11,127		38,631		—		—			49,758
Revenue from derivatives	3,871		—		125,000		(3,871		)	125,000
Total revenue	$	253,512	$	164,476	$	571,126	$	(19,841	)	$	969,273

Summary of revenue for continuing operations by major geographic area

The following table summarizes revenue by major geographic area for the periods indicated (in thousands):



	Three Months Ended March 31,
	2018		2017
Revenue:
United States	$	1,122,220	$	887,862
International	60,885		81,411
Total revenue	$	1,183,105	$	969,273

Adjusted EBITDA by segment and Reconciliation of Net Income to Adjusted EBITDA

The following table presents net income on a consolidated basis and a reconciliation of net income, which is the most comparable financial measure under GAAP, to Adjusted EBITDA, as well as Adjusted EBITDA by segment for the periods indicated (in thousands):



	Three Months Ended March 31,
	2018			2017
Reconciliation of Net Income to Adjusted EBITDA:
Net income	$	117,092		$	126,309
Less: Net income attributable to noncontrolling interests	(4,719		)	(2,733		)
Net income attributable to Buckeye Partners, L.P.	112,373			123,576
Add: Interest and debt expense	59,105			55,885
Income tax expense	490			222
Depreciation and amortization ⁽¹⁾	64,138			65,488
Non-cash unit-based compensation expense	8,690			8,678
Acquisition and transition expense ⁽²⁾	282			1,029
Hurricane-related costs ⁽³⁾	581			2,403
Proportionate share of Adjusted EBITDA for the equity method investment in VTTI ⁽⁴⁾	34,540			28,617
Less: Gains on property damage recoveries ⁽⁵⁾	(14,085		)	—
Earnings from the equity method investment in VTTI ⁽⁴⁾	(4,390		)	(8,389		)
Adjusted EBITDA	$	261,724		$	277,509

Adjusted EBITDA:
Domestic Pipelines & Terminals	$	140,651		$	139,443
Global Marine Terminals	117,418			130,631
Merchant Services	3,655			7,435
Adjusted EBITDA	$	261,724		$	277,509


(1)	Includes 100% of the depreciation and amortization expense of $17.8 million and $17.5 million for Buckeye Texas for the three months ended March 31, 2018 and 2017, respectively.


(2)	Represents transaction, internal and third-party costs related to asset acquisition and integration.


(3)	Represents costs incurred at our BBH facility in the Bahamas, Yabucoa Terminal in Puerto Rico, Corpus Christi facilities in Texas, and certain terminals in Florida, as a result of hurricanes which occurred in 2017 and 2016, consisting of operating expenses and write-offs of damaged long-lived assets, net of insurance recoveries.

(4)

Due to the significance of our equity method investment in VTTI, effective January 1, 2017, we applied the definition of Adjusted EBITDA, covered in our description of Adjusted EBITDA, with respect to our proportionate share of VTTI’s Adjusted EBITDA. The calculation of our proportionate share of the reconciling items used to derive Adjusted EBITDA is based upon our 50% equity interest in VTTI, prior to adjustments related to noncontrolling interests in several of its subsidiaries and partnerships, which are immaterial.


(5)	Represents gains on recoveries, which settled property damages caused by a third party, primarily related to vessel allision with a jetty at our BBH facility in the Bahamas, which occurred in May 2012.