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 expense that management does not consider when evaluating the core profitability of our separate operating segments.



	Year Ended December 31, 2015
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
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	376,279		89,001			62,221			(3,851		)	523,650
Cost of product sales	442,621		3,278			1,374			—			447,273
(Earnings) losses of non-controlled entities	193		(63,918		)	(2,758		)	—			(66,483		)
Operating margin	778,514		381,819			119,829			3,851			1,284,013
Depreciation and amortization expense	96,244		35,681			31,036			3,851			166,812
G&A expenses	93,567		35,721			20,660			—			149,948
Operating profit	$	588,703	$	310,417		$	68,133		$	—		$	967,253
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



	Year Ended December 31, 2016
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	1,002,368	$	407,837		$	181,721		$	(807	)	$	1,591,119
Product sales revenue	561,759		31,170			6,673			—			599,602
Affiliate management fee revenue	765		12,533			1,391			—			14,689
Total revenue	1,564,892		451,540			189,785			(807		)	2,205,410
Operating expenses	380,347		88,528			65,559			(5,762		)	528,672
Cost of product sales	459,989		31,657			1,692			—			493,338
(Earnings) losses of non-controlled entities	968		(76,972		)	(2,692		)	—			(78,696		)
Operating margin	723,588		408,327			125,226			4,955			1,262,096
Depreciation and amortization expense	103,388		38,081			31,718			4,955			178,142
G&A expenses	91,372		36,165			19,628			—			147,165
Operating profit	$	528,828	$	334,081		$	73,880		$	—		$	936,789
Additions to long-lived assets	$	291,202	$	250,433		$	104,728					$	646,363

	As of December 31, 2016
Segment assets	$	3,289,600	$	2,631,407		$	791,132					$	6,712,139
Corporate assets												59,934
Total assets												$	6,772,073
Goodwill	$	38,369	$	12,082		$	2,809					$	53,260
Investments in non-controlled entities	$	31,029	$	886,920		$	13,306					$	931,255



	Year Ended December 31, 2017
	(in thousands)
	Refined Products		Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	1,096,040	$	458,455		$	180,683		$	(3,403	)	$	1,731,775
Product sales revenue	717,140		35,053			6,013			—			758,206
Affiliate management fee revenue	1,388		13,950			2,342			—			17,680
Total revenue	1,814,568		507,458			189,038			(3,403		)	2,507,661
Operating expenses	400,439		120,920			65,296			(8,677		)	577,978
Cost of product sales	586,751		41,325			7,541			—			635,617
(Earnings) losses of non-controlled entities	1,632		(120,173		)	(2,453		)	—			(120,994		)
Operating margin	825,746		465,386			118,654			5,274			1,415,060
Depreciation and amortization expense	109,434		48,796			33,126			5,274			196,630
G&A expenses	103,225		41,490			21,002			—			165,717
Operating profit	$	613,087	$	375,100		$	64,526		$	—		$	1,052,713
Additions to long-lived assets	$	269,369	$	168,306		$	127,012					$	564,687

	As of December 31, 2017
Segment assets	$	3,499,492	$	2,817,186		$	871,557					$	7,188,235
Corporate assets												206,140
Total assets												$	7,394,375
Goodwill	$	38,369	$	12,082		$	2,809					$	53,260
Investments in non-controlled entities	$	29,578	$	961,032		$	91,901					$	1,082,511