Segment Disclosures

6 Months Ended

Jun. 30, 2012

Segment Disclosures [Abstract]

Segment Disclosures

3. 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 below. Operating profit includes depreciation and amortization expense and general and administrative ("G&A") expenses that management does not focus on when evaluating the core profitability of our separate operating segments.

	Three Months Ended June 30, 2011
	(in thousands)
		Petroleum				Ammonia
		Pipeline			Petroleum		Pipeline	Intersegment
		System			Terminals		System	Eliminations				Total
Transportation and terminals revenues	$	161,168		$	56,969	$	5,755	$	(700	)	$	223,192
Product sales revenues		152,891			7,140		—		(88	)		159,943
Affiliate management fee revenue		192			—		—		—			192
Total revenues		314,251			64,109		5,755		(788	)		383,327
Operating expenses		51,737			26,627		3,726		(767	)		81,323
Product purchases		117,540			2,084		—		(788	)		118,836
Equity earnings		(1,443	)		—		—		—			(1,443	)
Operating margin		146,417			35,398		2,029		767			184,611
Depreciation and amortization expense		19,291			10,243		363		767			30,664
G&A expenses		18,783			5,838		660		—			25,281
Operating profit	$	108,343		$	19,317	$	1,006	$	—		$	128,666

	Three Months Ended June 30, 2012
	(in thousands)
		Petroleum				Ammonia
		Pipeline			Petroleum		Pipeline	Intersegment
		System			Terminals		System	Eliminations				Total
Transportation and terminals revenues	$	178,757		$	64,053	$	6,659	$	(708	)	$	248,761
Product sales revenues		193,040			7,699		—		(171	)		200,568
Affiliate management fee revenue		198			—		—		—			198
Total revenues		371,995			71,752		6,659		(879	)		449,527
Operating expenses		56,377			24,440		2,179		(670	)		82,326
Product purchases		140,810			4,567		—		(879	)		144,498
Equity earnings		(1,494	)		16		—		—			(1,478	)
Operating margin		176,302			42,729		4,480		670			224,181
Depreciation and amortization expense		19,875			10,516		425		670			31,486
G&A expenses		18,539			6,189		686		—			25,414
Operating profit	$	137,888		$	26,024	$	3,369	$	—		$	167,281

	Six Months Ended June 30, 2011
	(in thousands)
		Petroleum					Ammonia
		Pipeline			Petroleum		Pipeline	Intersegment
		System			Terminals		System		Eliminations			Total
Transportation and terminals revenues	$	305,230		$	112,190	$	12,787	$	(1,607	)	$	428,600
Product sales revenues		379,879			17,558		—		(198	)		397,239
Affiliate management fee revenue		385			—		—		—			385
Total revenues		685,494			129,748		12,787		(1,805	)		826,224
Operating expenses		89,447			48,623		7,057		(1,443	)		143,684
Product purchases		326,013			5,858		—		(1,805	)		330,066
Equity earnings		(2,810	)		—		—		—			(2,810	)
Operating margin		272,844			75,267		5,730		1,443			355,284
Depreciation and amortization expense		37,843			20,014		727		1,443			60,027
G&A expenses		37,238			11,309		1,324		—			49,871
Operating profit	$	197,763		$	43,944	$	3,679	$	—		$	245,386

	Six Months Ended June 30, 2012
	(in thousands)
		Petroleum					Ammonia
		Pipeline			Petroleum		Pipeline	Intersegment
		System			Terminals		System		Eliminations			Total
Transportation and terminals revenues	$	327,487		$	127,233	$	13,008	$	(1,413	)	$	466,315
Product sales revenues		459,297			17,464		—		(463	)		476,298
Affiliate management fee revenue		397			—		—		—			397
Total revenues		787,181			144,697		13,008		(1,876	)		943,010
Operating expenses		102,931			44,622		4,629		(1,404	)		150,778
Product purchases		385,691			9,295		—		(1,876	)		393,110
Equity earnings		(3,163	)		37		—		—			(3,126	)
Operating margin		301,722			90,743		8,379		1,404			402,248
Depreciation and amortization expense		39,538			21,245		809		1,404			62,996
G&A expenses		35,994			11,855		1,309		—			49,158
Operating profit	$	226,190		$	57,643	$	6,261	$	—		$	290,094