BUSINESS SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2019

The following tables provide information about our revenue types by reportable segment for the periods indicated (in thousands).



	Three Months Ended June 30,
	2019
	Domestic Pipelines & Terminals			Global Marine Terminals		Merchant Services		Intersegment Eliminations			Total
Revenue from contracts with customers
Pipeline transportation	$	119,798		$	—	$	—	$	(2,504	)	$	117,294
Terminalling and storage services	102,360			87,406		—		(6,411		)	183,355
Product sales	—			5		344,502		(2,930		)	341,577
Other services	12,627			435		576		(17		)	13,621
Total revenue from contracts with customers	234,785			87,846		345,078		(11,862		)	655,847
Revenue from leases	10,490			46,511		—		(142		)	56,859
Commodity derivative contracts, net	(1,694		)	—		80,690		—			78,996
Total revenue	$	243,581		$	134,357	$	425,768	$	(12,004	)	$	791,702



	Three Months Ended June 30,
	2018
	Domestic Pipelines & Terminals			Global Marine Terminals		Merchant Services		Intersegment Eliminations			Total
Revenue from contracts with customers
Pipeline transportation	$	127,959		$	—	$	—	$	(2,163	)	$	125,796
Terminalling and storage services	100,981			99,927		—		(9,730		)	191,178
Product sales	—			7		455,185		(1,889		)	453,303
Other services	10,694			320		1,920		(15		)	12,919
Total revenue from contracts with customers	239,634			100,254		457,105		(13,797		)	783,196
Revenue from leases	11,065			42,889		—		—			53,954
Commodity derivative contracts, net	(819		)	—		104,508		—			103,689
Total revenue	$	249,880		$	143,143	$	561,613	$	(13,797	)	$	940,839



	Six Months Ended June 30,
	2019
	Domestic Pipelines & Terminals			Global Marine Terminals		Merchant Services		Intersegment Eliminations			Total
Revenue from contracts with customers
Pipeline transportation	$	242,013		$	—	$	—	$	(5,175	)	$	236,838
Terminalling and storage services	208,139			175,768		—		(16,907		)	367,000
Product sales	—			262		863,566		(5,682		)	858,146
Other services	20,188			870		1,056		(32		)	22,082
Total revenue from contracts with customers	470,340			176,900		864,622		(27,796		)	1,484,066
Revenue from leases	20,015			91,464		—		(294		)	111,185
Commodity derivative contracts, net	(5,238		)	—		230,661		—			225,423
Total revenue	$	485,117		$	268,364	$	1,095,283	$	(28,090	)	$	1,820,674



	Six Months Ended June 30,
	2018
	Domestic Pipelines & Terminals			Global Marine Terminals		Merchant Services		Intersegment Eliminations			Total
Revenue from contracts with customers
Pipeline transportation	$	249,430		$	—	$	—	$	(5,803	)	$	243,627
Terminalling and storage services	216,956			201,145		—		(18,323		)	399,778
Product sales	—			20		1,098,693		(5,242		)	1,093,471
Other services	22,783			341		4,820		(1,362		)	26,582
Total revenue from contracts with customers	489,169			201,506		1,103,513		(30,730		)	1,763,458
Revenue from leases	19,055			85,722		—		—			104,777
Commodity derivative contracts, net	(2,909		)	—		256,528		2,090			255,709
Total revenue	$	505,315		$	287,228	$	1,360,041	$	(28,640	)	$	2,123,944

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 June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Revenue:
United States	$	740,538	$	878,607	$	1,718,318	$	2,000,827
International	51,164		62,232		102,356		123,117
Total revenue	$	791,702	$	940,839	$	1,820,674	$	2,123,944

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

The following table presents a reconciliation of consolidated 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 June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Reconciliation of Net (loss) income to Adjusted EBITDA:
Net income	$	90,515		$	93,317		$	171,775		$	210,409
Less: Net income attributable to noncontrolling interests	(496		)	(1,413		)	(994		)	(6,132		)
Net income attributable to Buckeye Partners, L.P.	90,019			91,904			170,781			204,277
Add: Interest and debt expense	49,574			59,566			101,742			118,671
Income tax expense	297			782			595			1,272
Depreciation and amortization ⁽¹⁾	65,859			66,569			129,743			130,707
Non-cash unit-based compensation expense	5,781			7,976			15,698			16,666
Acquisition, dispositions, and transition expense ⁽²⁾	5,783			141			9,866			423
Non-cash impairment on disposals of long-lived assets	911			—			3,106			—
Proportionate share of Adjusted EBITDA for equity method investment in VTTI ⁽³⁾	—			34,640			—			69,180
Loss on early extinguishment of debt ⁽⁴⁾	—			—			4,020			—
Less: Gains on property damage recoveries ⁽⁵⁾	—			(450		)	—			(14,535		)
Hurricane-related costs, net of recoveries ⁽⁶⁾	(3,881		)	(1,393		)	(4,810		)	(812		)
Earnings from the equity method investment in VTTI ⁽³⁾	—			(4,882		)	—			(9,272		)
Adjusted EBITDA	$	214,343		$	254,853		$	430,741		$	516,577

Adjusted EBITDA:
Domestic Pipelines & Terminals	$	133,082		$	135,321		$	268,975		$	275,972
Global Marine Terminals	76,156			120,728			151,663			238,146
Merchant Services	5,105			(1,196		)	10,103			2,459
Adjusted EBITDA	$	214,343		$	254,853		$	430,741		$	516,577


(1)	Includes 100% of the depreciation and amortization expense of $18.2 million and $36.0 million for Buckeye Texas for the three and six months ended June 30, 2018, respectively.


(2)	Represents transaction, internal and third-party costs related to the Merger, asset acquisitions, dispositions, and integration.

(3)

Due to the significance of our equity method investment in VTTI, effective January 1, 2017 through September 30, 2018, 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 was based upon our 50% equity interest in VTTI, prior to adjustments related to noncontrolling interests in several of its subsidiaries and partnerships, which were immaterial.


(4)	Represents the loss on early extinguishment of the $275.0 million principal amount outstanding under our 5.500% notes and $250.0 million variable-rate Term Loan.


(5)	Represents gains on recoveries of property damages caused by third parties, which primarily related to a settlement in connection with a 2012 vessel allision with a jetty at our BBH facility in the Bahamas.


(6)	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, including operating expenses and write-offs of damaged long-lived assets, net of insurance recoveries.