Segment Disclosures

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Disclosures

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 revenue from affiliates and external customers, operating expenses, cost of product sales and earnings of non-controlled 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 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 G&A expenses that management does not consider when evaluating the core profitability of our separate operating segments.

	Year Ended December 31, 2013
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
	(in thousands)
Transportation and terminals revenue(1)	$	826,202	$	203,459		$	158,791		$	—		$	1,188,452
Product sales revenue	738,271		—			6,398			—			744,669
Affiliate management fee revenue	—		13,361			1,248			—			14,609
Total revenue	1,564,473		216,820			166,437			—			1,947,730
Operating expenses(1)	295,785		44,181			59,407			(3,179		)	396,194
Cost of product sales	574,703		—			3,326			—			578,029
Earnings of non-controlled entities	—		(3,781		)	(2,494		)	—			(6,275		)
Operating margin	693,985		176,420			106,198			3,179			979,782
Depreciation and amortization expense	86,926		24,119			28,006			3,179			142,230
G&A expenses	91,658		19,896			20,942			—			132,496
Operating profit	$	515,401	$	132,405		$	57,250		$	—		$	705,056
Additions to long-lived assets	$	361,134	$	199,362		$	32,563					$	593,059
	As of December 31, 2013
Segment assets	$	2,811,398	$	1,252,036		$	648,061					$	4,711,495
Corporate assets												91,812
Total assets												$	4,803,307
Goodwill	$	38,369	$	12,082		$	2,809					$	53,260
Investments in non-controlled entities	$	—	$	345,904		$	14,948					$	360,852

	Year Ended December 31, 2014
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
	(in thousands)
Transportation and terminals revenue(1)	$	946,612	$	341,915		$	170,740		$	—		$	1,459,267
Product sales revenue	872,537		—			6,437			—			878,974
Affiliate management fee revenue	—		20,790			1,321			—			22,111
Total revenue	1,819,149		362,705			178,498			—			2,360,352
Operating expenses(1)	356,057		83,184			65,173			(3,513		)	500,901
Cost of product sales	592,887		—			1,698			—			594,585
Earnings of non-controlled entities	—		(16,309		)	(3,085		)	—			(19,394		)
Operating margin	870,205		295,830			114,712			3,513			1,284,260
Depreciation and amortization expense	101,642		27,800			28,786			3,513			161,741
G&A expenses	96,411		29,557			22,320			—			148,288
Operating profit	$	672,152	$	238,473		$	63,606		$	—		$	974,231
Additions to long-lived assets	$	163,753	$	439,846		$	18,413					$	622,012
	As of December 31, 2014
Segment assets	$	2,875,412	$	1,937,242		$	647,900					$	5,460,554
Corporate assets												40,855
Total assets												$	5,501,409
Goodwill	$	38,369	$	12,082		$	2,809					$	53,260
Investments in non-controlled entities	$	—	$	599,757		$	14,110					$	613,867

	Year Ended December 31, 2015
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
	(in thousands)
Transportation and terminals revenue	$	974,505	$	394,098		$	176,143		$	—		$	1,544,746
Product sales revenue	623,102		3,587			3,147			—			629,836
Affiliate management fee revenue	—		12,495			1,376			—			13,871
Total revenue	1,597,607		410,180			180,666			—			2,188,453
Operating expenses	377,772		89,455			62,526			(3,851		)	525,902
Cost of product sales	442,621		3,278			1,374			—			447,273
(Earnings) loss of non-controlled entities	193		(63,918		)	(2,758		)	—			(66,483		)
Operating margin	777,021		381,365			119,524			3,851			1,281,761
Depreciation and amortization expense	96,244		35,681			31,036			3,851			166,812
G&A expenses	94,482		36,000			20,847			—			151,329
Operating profit	$	586,295	$	309,684		$	67,641		$	—		$	963,620
Additions to long-lived assets	$	310,907	$	289,851		$	70,290					$	671,048
	As of December 31, 2015
Segment assets	$	2,991,322	$	2,313,110		$	677,914					$	5,982,346
Corporate assets												59,221
Total assets												$	6,041,567
Goodwill	$	38,369	$	12,082		$	2,809					$	53,260
Investments in non-controlled entities	$	12,381	$	739,470		$	13,777					$	765,628

(1) Includes adjustment of tender deductions as discussed in Note 2 – Summary of Significant Accounting Policies. The amounts adjusted for our refined products segment are $25.1 million and $24.8 million for 2013 and 2014, respectively. The amounts adjusted for our crude oil segment are $25.0 million and $31.8 million for 2013 and 2014, respectively.