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 (presented in thousands). Operating profit includes depreciation, amortization and impairment 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 March 31, 2018
	Refined Products			Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	260,394		$	126,258		$	46,200		$	(915	)	$	431,937
Product sales revenue	232,774			6,439			2,379			—			241,592
Affiliate management fee revenue	297			4,016			937			—			5,250
Total revenue	493,465			136,713			49,516			(915		)	678,779
Operating expenses	94,049			33,591			17,964			(2,308		)	143,296
Cost of product sales	190,333			7,050			2,209			—			199,592
Earnings of non-controlled entities	(2,318		)	(31,608		)	(612		)	—			(34,538		)
Operating margin	211,401			127,680			29,955			1,393			370,429
Depreciation, amortization and impairment expense	28,907			12,762			8,817			1,393			51,879
G&A expense	28,887			11,906			5,763			—			46,556
Operating profit	$	153,607		$	103,012		$	15,375		$	—		$	271,994



	Three Months Ended March 31, 2019
	Refined Products			Crude Oil			Marine Storage			Intersegment Eliminations			Total
Transportation and terminals revenue	$	267,005		$	147,608		$	47,117		$	(938	)	$	460,792
Product sales revenue	155,156			5,713			2,126			—			162,995
Affiliate management fee revenue	412			3,486			1,250			—			5,148
Total revenue	422,573			156,807			50,493			(938		)	628,935
Operating expenses	89,678			43,823			14,897			(2,373		)	146,025
Cost of product sales	160,154			6,664			2,276			—			169,094
Other income	(614		)	(1,573		)	(4,754		)	—			(6,941		)
(Earnings) losses of non-controlled entities	1,430			(32,302		)	(383		)	—			(31,255		)
Operating margin	171,925			140,195			38,457			1,435			352,012
Depreciation, amortization and impairment expense	35,534			15,259			9,643			1,435			61,871
G&A expense	27,715			12,615			5,665			—			45,995
Operating profit	$	108,676		$	112,321		$	23,149		$	—		$	244,146