Segment Disclosures

6 Months Ended

Jun. 30, 2017

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 as 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 general and administrative (“G&A”) expense that management does not consider when evaluating the core profitability of our separate operating segments.

	Three Months Ended June 30, 2016
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	247,842	$	101,340		$	43,058		$	—		$	392,240
Product sales revenue	122,311		(28		)	1,406			—			123,689
Affiliate management fee revenue	124		2,486			358			—			2,968
Total revenue	370,277		103,798			44,822			—			518,897
Operating expenses	98,513		20,555			16,278			(1,163		)	134,183
Cost of product sales	94,392		1,016			295			—			95,703
(Earnings) losses of non-controlled entities	38		(14,711		)	(666		)	—			(15,339		)
Operating margin	177,334		96,938			28,915			1,163			304,350
Depreciation and amortization expense	24,971		9,062			8,106			1,163			43,302
G&A expense	20,506		9,149			4,899			—			34,554
Operating profit	$	131,857	$	78,727		$	15,910		$	—		$	226,494

	Three Months Ended June 30, 2017
	(in thousands)
	Refined Products			Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	277,883		$	108,455		$	47,794		$	(893	)	$	433,239
Product sales revenue	161,723			19,403			878			—			182,004
Affiliate management fee revenue	353			3,474			370			—			4,197
Total revenue	439,959			131,332			49,042			(893		)	619,440
Operating expenses	100,713			31,410			15,375			(2,204		)	145,294
Cost of product sales	125,220			18,607			2,148			—			145,975
(Earnings) losses of non-controlled entities	(422		)	(24,494		)	(660		)	—			(25,576		)
Operating margin	214,448			105,809			32,179			1,311			353,747
Depreciation and amortization expense	27,005			12,507			8,073			1,311			48,896
G&A expense	26,720			11,071			5,602			—			43,393
Operating profit	$	160,723		$	82,231		$	18,504		$	—		$	261,458

	Six Months Ended June 30, 2016
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	472,592	$	203,068		$	86,655		$	—		$	762,315
Product sales revenue	266,227		1,715			2,309			—			270,251
Affiliate management fee revenue	204		5,270			673			—			6,147
Total revenue	739,023		210,053			89,637			—			1,038,713
Operating expenses	184,287		41,681			33,483			(2,355		)	257,096
Cost of product sales	206,248		2,361			679			—			209,288
(Earnings) losses of non-controlled entities	80		(31,690		)	(1,357		)	—			(32,967		)
Operating margin	348,408		197,701			56,832			2,355			605,296
Depreciation and amortization expense	50,091		18,931			15,679			2,355			87,056
G&A expense	45,736		18,888			10,606			—			75,230
Operating profit	$	252,581	$	159,882		$	30,547		$	—		$	443,010

	Six Months Ended June 30, 2017
	(in thousands)
	Refined Products			Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	519,788		$	213,508		$	94,201		$	(1,587	)	$	825,910
Product sales revenue	401,893			22,506			3,225			—			427,624
Affiliate management fee revenue	682			6,608			690			—			7,980
Total revenue	922,363			242,622			98,116			(1,587		)	1,261,514
Operating expenses	194,246			58,828			28,030			(4,218		)	276,886
Cost of product sales	292,901			21,184			4,766			—			318,851
(Earnings) losses of non-controlled entities	(533		)	(45,144		)	(1,345		)	—			(47,022		)
Operating margin	435,749			207,754			66,665			2,631			712,799
Depreciation and amortization expense	53,971			23,363			16,229			2,631			96,194
G&A expense	51,621			21,110			10,943			—			83,674
Operating profit	$	330,157		$	163,281		$	39,493		$	—		$	532,931