Segment Disclosures

9 Months Ended

Sep. 30, 2011

Segment Disclosures [Abstract]

Segment Disclosures

5. Segment Disclosures

Our reportable segments are strategic business units that offer different products and services. Our segments are managed separately because each segment requires different marketing strategies and business knowledge. Management evaluates performance based on segment operating margin, which includes revenues from affiliates and external customers, operating expenses, product purchases and equity earnings. Transactions between our business segments are conducted and recorded on the same basis as transactions with third-party entities.

We believe that investors benefit from having access to the same financial measures used by management. Operating margin, which is presented in the following tables, is an important measure used by management to evaluate the economic performance of our core operations. Operating margin is not a generally accepted accounting principles ("GAAP") measure but the components of operating margin are computed using amounts that are determined in accordance with GAAP. A reconciliation of operating margin to operating profit, which is its nearest comparable GAAP financial measure, is included in the tables. Operating profit includes expense items, such as depreciation and amortization expense and G&A expenses, that management does not consider when evaluating the core profitability of our operations.

	Three Months Ended September 30, 2010
	(in thousands)
	Petroleum Pipeline System			Petroleum Terminals		Ammonia Pipeline System			Intersegment Eliminations			Total
Transportation and terminals revenues	$	156,652		$	49,905	$	671		$	(501	)	$	206,727
Product sales revenues	195,177			4,233		—			(126		)	199,284
Affiliate management fee revenue	190			—		—			—			190
Total revenues	352,019			54,138		671			(627		)	406,201
Operating expenses	56,941			23,044		8,242			(643		)	87,584
Product purchases	186,023			1,597		—			(627		)	186,993
Equity earnings	(1,654		)	—		—			—			(1,654		)
Operating margin (loss)	110,709			29,497		(7,571		)	643			133,278
Depreciation and amortization expense	17,840			8,562		358			643			27,403
G&A expenses	16,965			6,033		626			—			23,624
Operating profit (loss)	$	75,904		$	14,902	$	(8,555	)	$	—		$	82,251

	Three Months Ended September 30, 2011
	(in thousands)
	Petroleum Pipeline System			Petroleum Terminals			Ammonia Pipeline System			Intersegment Eliminations			Total
Transportation and terminals revenues	$	167,500		$	60,621		$	4,644		$	(701	)	$	232,064
Product sales revenues	197,932			5,887			—			(566		)	203,253
Affiliate management fee revenue	193			—			—			—			193
Total revenues	365,625			66,508			4,644			(1,267		)	435,510
Operating expenses	61,075			22,780			6,349			(746		)	89,458
Product purchases	157,356			3,461			—			(1,267		)	159,550
Equity earnings	(1,954		)	(1		)	—			—			(1,955		)
Operating margin (loss)	149,148			40,268			(1,705		)	746			188,457
Depreciation and amortization expense	18,945			10,179			364			746			30,234
G&A expenses	15,162			4,743			565			—			20,470
Operating profit (loss)	$	115,041		$	25,346		$	(2,634	)	$	—		$	137,753

	Nine Months Ended September 30, 2010
	(in thousands)
	Petroleum Pipeline System			Petroleum Terminals		Ammonia Pipeline System			Intersegment Eliminations			Total
Transportation and terminals revenues	$	421,028		$	144,010	$	9,547		$	(1,516	)	$	573,069
Product sales revenues	570,366			15,106		—			(154		)	585,318
Affiliate management fee revenue	569			—		—			—			569
Total revenues	991,963			159,116		9,547			(1,670		)	1,158,956
Operating expenses	149,211			57,679		15,458			(2,368		)	219,980
Product purchases	499,066			6,120		—			(1,670		)	503,516
Equity earnings	(4,323		)	—		—			—			(4,323		)
Operating margin	348,009			95,317		(5,911		)	2,368			439,783
Depreciation and amortization expense	51,200			24,809		1,083			2,368			79,460
G&A expenses	48,307			16,911		1,826			—			67,044
Operating profit (loss)	$	248,502		$	53,597	$	(8,820	)	$	—		$	293,279

	Nine Months Ended September 30, 2011
	(in thousands)
	Petroleum Pipeline System			Petroleum Terminals			Ammonia Pipeline System		Intersegment Eliminations			Total
Transportation and terminals revenues	$	472,730		$	172,811		$	17,431	$	(2,308	)	$	660,664
Product sales revenues	577,811			23,445			—		(764		)	600,492
Affiliate management fee revenue	578			—			—		—			578
Total revenues	1,051,119			196,256			17,431		(3,072		)	1,261,734
Operating expenses	150,522			71,403			13,406		(2,189		)	233,142
Product purchases	483,369			9,319			—		(3,072		)	489,616
Equity earnings	(4,764		)	(1		)	—		—			(4,765		)
Operating margin	421,992			115,535			4,025		2,189			543,741
Depreciation and amortization expense	56,788			30,193			1,091		2,189			90,261
G&A expenses	52,400			16,052			1,889		—			70,341
Operating profit	$	312,804		$	69,290		$	1,045	$	—		$	383,139
	As of September 30, 2011
Segment assets	$	2,702,501		$	1,042,325		$	36,790	$	—		$	3,781,616
Corporate assets												225,082
Total assets												$	4,006,698