SEGMENT REPORTING

We manage our business in two reportable segments: Terminalling services and Fleet services. The Terminalling services segment charges fees to load various grades of crude oil into railcars and transload ethanol from railcars, including related logistics services. Our terminalling services are primarily provided under multi-year, take-or-pay contracts. The Fleet services segment provides customers with access to railcars, as well as railcar-specific services associated with the transportation of crude oil, ethanol and other liquid hydrocarbons under long-term, take-or-pay contracts. Corporate activities are not considered a reportable segment, but are included to present corporate and financing transactions which are not allocated to the established reporting segments.

Our segments offer different services and are managed accordingly. Our chief operating decision maker, or CODM, regularly reviews financial information about both segments in order to allocate resources and evaluate performance. Our CODM assesses segment performance based on Segment Adjusted EBITDA, which we define as net income before depreciation and amortization, interest and other income, interest and other expense, unrealized gains and losses associated with derivative instruments, foreign currency transaction gains and losses, income taxes, non-cash expense related to our equity compensation programs, discontinued operations, adjustments related to deferred revenue associated with minimum monthly commitment fees and other items which management does not believe reflect the underlying performance of our business.

The following tables summarize our reportable segment data for continuing operations:



	Three Months Ended June 30, 2015
	Terminalling services		Fleet services			Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	14,279	$	—		$	—		$	14,279
Terminalling services — related party	1,803		—			—			1,803
Railroad incentives	18		—			—			18
Fleet leases	—		1,906			—			1,906
Fleet leases — related party	—		1,011			—			1,011
Fleet services	—		155			—			155
Fleet services — related party	—		670			—			670
Freight and other reimbursables	—		531			—			531
Freight and other reimbursables — related party	—		22			—			22
Total revenue	16,100		4,295			—			20,395
Operating costs
Subcontracted rail services	2,222		—			—			2,222
Pipeline fees	4,460		—			—			4,460
Fleet leases	—		2,917			—			2,917
Freight and other reimbursables	—		553			—			553
Selling, general and administrative	1,248		205			1,887			3,340
Depreciation	1,096		—			—			1,096
Total operating costs	9,026		3,675			1,887			14,588
Operating income (loss)	7,074		620			(1,887		)	5,807
Interest expense	572		—			423			995
Loss associated with derivative instruments	218		—			—			218
Foreign currency transaction loss (gain)	8		(50		)	—			(42		)
Provision for income taxes	1,973		10			1			1,984
Income (loss) from continuing operations	$	4,303	$	660		$	(2,311	)	$	2,652
Capital expenditures	$	311	$	—		$	—		$	311



	Three Months Ended June 30, 2014
	Terminalling services			Fleet services			Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	1,870		$	—		$	—		$	1,870
Fleet leases	—			2,422			—			2,422
Fleet services	—			137			—			137
Fleet services — related party	—			364			—			364
Freight and other reimbursables	—			614			—			614
Freight and other reimbursables — related party	—			29			—			29
Total revenue	1,870			3,566			—			5,436
Operating costs
Subcontracted rail services	1,629			—			—			1,629
Fleet leases	—			2,422			—			2,422
Freight and other reimbursables	—			643			—			643
Selling, general and administrative	1,191			795			408			2,394
Depreciation	128			—			—			128
Total operating costs	2,948			3,860			408			7,216
Operating loss	(1,078		)	(294		)	(408		)	(1,780		)
Interest expense	1,041			—			—			1,041
Loss associated with derivative instruments	802			—			—			802
Foreign currency transaction loss	558			—			—			558
Provision for income taxes	17			1			—			18
Loss from continuing operations	$	(3,496	)	$	(295	)	$	(408	)	$	(4,199	)
Capital expenditures	$	16,551		$	—		$	—		$	16,551



	Six Months Ended June 30, 2015
	Terminalling services			Fleet services			Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	22,666		$	—		$	—		$	22,666
Terminalling services — related party	1,803			—			—			1,803
Railroad incentives	27			—			—			27
Fleet leases	—			3,784			—			3,784
Fleet leases — related party	—			2,221			—			2,221
Fleet services	—			311			—			311
Fleet services — related party	—			1,542			—			1,542
Freight and other reimbursables	—			1,487			—			1,487
Freight and other reimbursables — related party	—			62			—			62
Total revenue	24,496			9,407			—			33,903
Operating costs
Subcontracted rail services	4,449			—			—			4,449
Pipeline fees	6,403			—			—			6,403
Fleet leases	—			6,005			—			6,005
Freight and other reimbursables	—			1,549			—			1,549
Selling, general and administrative	2,542			464			3,730			6,736
Depreciation	2,189			—			—			2,189
Total operating costs	15,583			8,018			3,730			27,331
Operating income (loss)	8,913			1,389			(3,730		)	6,572
Interest expense	1,174			—			813			1,987
Gain associated with derivative instruments	(1,731		)	—			—			(1,731		)
Foreign currency transaction loss (gain)	54			(27		)	(410		)	(383		)
Provision for income taxes	1,980			25			1			2,006
Income (loss) from continuing operations	$	7,436		$	1,391		$	(4,134	)	$	4,693
Capital expenditures	$	733		$	—		$	—		$	733



	Six Months Ended June 30, 2014
	Terminalling services			Fleet services			Corporate			Total
	(in thousands)
Revenues
Terminalling services	$	3,448		$	—		$	—		$	3,448
Fleet leases	—			4,596			—			4,596
Fleet services	—			238			—			238
Fleet services — related party	—			718			—			718
Freight and other reimbursables	—			1,702			—			1,702
Freight and other reimbursables — related party	—			219			—			219
Total revenue	3,448			7,473			—			10,921
Operating costs
Subcontracted rail services	2,109			—			—			2,109
Fleet leases	—			4,596			—			4,596
Freight and other reimbursables	—			1,921			—			1,921
Selling, general and administrative	1,955			1,057			801			3,813
Depreciation	254			—			—			254
Total operating costs	4,318			7,574			801			12,693
Operating loss	(870		)	(101		)	(801		)	(1,772		)
Interest expense	1,984			—			—			1,984
Loss associated with derivative instruments	802			—			—			802
Foreign currency transaction loss	688			—			—			688
Provision for income taxes	22			2			—			24
Loss from continuing operations	$	(4,366	)	$	(103	)	$	(801	)	$	(5,270	)
Capital expenditures	$	30,327		$	—		$	—		$	30,327

The following tables summarize total assets of our reportable segments from continuing operations:



	June 30, 2015		December 31, 2014
	(in thousands)
Terminalling services	$	100,026	$	105,093
Fleet services	10,985		7,692
Corporate	39,359		40,867
Total assets	$	150,370	$	153,652

Segment Adjusted EBITDA

The following table provides a reconciliation of Segment Adjusted EBITDA to income (loss) from continuing operations:



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in thousands)
Adjusted EBITDA
Terminalling services	$	10,504		$	(950	)	$	21,160		$	(616	)
Fleet services	620			(294		)	1,389			(101		)
Corporate activities ⁽¹⁾	(1,213		)	(408		)	(2,329		)	(801		)
Total Adjusted EBITDA	9,911			(1,652		)	20,220			(1,518		)
Add (deduct):
Interest expense	(995		)	(1,041		)	(1,987		)	(1,984		)
Depreciation	(1,096		)	(128		)	(2,189		)	(254		)
Provision for income taxes	(1,984		)	(18		)	(2,006		)	(24		)
Gain (loss) associated with derivative instruments	(218		)	(802		)	1,731			(802		)
Settlement of derivative contracts ⁽²⁾	(784		)	—			(1,678		)	—
Unit based compensation expense	(674		)	—			(1,401		)	—
Foreign currency transaction gain (loss) ⁽³⁾	42			(558		)	383			(688		)
Deferred revenue associated with minimum monthly commitment fees ⁽⁴⁾	(1,550		)	—			(8,380		)	—
Income (loss) from continuing operations	$	2,652		$	(4,199	)	$	4,693		$	(5,270	)


⁽¹⁾	Corporate activities represents corporate and financing transactions that are not allocated to the established reporting segments.


⁽²⁾	The amounts presented represent the gross proceeds received at the time the derivative contracts were settled and do not consider the amounts paid in connection with the initial purchase of the derivative contracts. We purchased the derivative contracts for $93 thousand and $173 thousand with respect to the contracts settled in the three and six months ended June 30, 2015, respectively.


⁽³⁾	Represents foreign exchange transactional expenses associated with our Canadian subsidiaries.

⁽⁴⁾

Represents deferred revenue associated with minimum monthly commitment fees in excess of throughput utilized, which fees are not refundable to the customers. Amounts presented are net of: (a) the corresponding prepaid Gibson pipeline fee that will be recognized as expense concurrently with the recognition of revenue; (b) approximately $11.3 million and $13.9 million of previously deferred revenue generated in prior periods for the three and six months ended June 30, 2015, respectively; and (c) approximately $0.9 million and $1.5 million of previously prepaid Gibson pipeline fees for the three and six months ended June 30, 2015, respectively. Refer to additional discussion of these items in Notes 7 and 9 of our consolidated financial statements.