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Segment Data (Notes)
 3 Months Ended
Mar. 31, 2013
Segment Data [Abstract]  
Segment Data
Segment Data
We report our assets and operating results in two reportable segments: (i) pipelines and transportation and (ii) wholesale marketing and terminalling. Our operating segments adhere to the same accounting polices used for our consolidated financial statements. Our operating segments are managed separately because each segment requires different industry knowledge, technology and marketing strategies. Decisions concerning the allocation of resources and assessment of operating performance are made based on this segmentation. Management measures the operating performance of each of its reportable segments based on the segment contribution margin. Segment contribution margin is defined as net sales less cost of sales and operating expenses, excluding depreciation and amortization.
The pipelines and transportation segment provides crude oil gathering, transportation and storage services to Delek's refining operations and independent third parties.
The wholesale marketing and terminalling segment provides marketing and terminalling services to Delek's refining operations and independent third parties.
The following is a summary of business segment operating performance as measured by contribution margin for the period indicated (in thousands):
 
 
Three Months Ended March 31, 2013
 
 
Pipelines and Transportation
 
Wholesale Marketing and Terminalling
 
Consolidated
Net sales
 
$
13,537

 
$
197,357

 
$
210,894

Operating costs and expenses:
 
 
 
 
 
 
Cost of goods sold
 
—

 
187,860

 
187,860

Operating expenses
 
4,621

 
1,241

 
5,862

Segment contribution margin
 
$
8,916

 
$
8,256

 
17,172

General and administrative expenses
 
 
 
 
 
1,677

Depreciation and amortization
 
 
 
 
 
2,352

Operating income
 
 
 
 
 
$
13,143

Total assets
 
$
163,047

 
$
97,759

 
$
260,806

Capital spending (excluding business combinations)
 
$
1,128

 
$
148

 
$
1,276


 
 
Three Months Ended March 31, 2012
 
 
Predecessor
 
 
Pipelines and Transportation
 
Wholesale Marketing and Terminalling
 
Combined
Net sales
 
$
6,680

 
$
232,404

 
$
239,084

Operating costs and expenses:
 
 
 
 
 
 
Cost of goods sold
 
—

 
225,409

 
225,409

Operating expenses
 
3,278

 
932

 
4,210

Segment contribution margin
 
$
3,402

 
$
6,063

 
9,465

General and administrative expenses
 
 
 
 
 
2,407

Depreciation and amortization
 
 
 
 
 
2,134

Loss on sale of assets
 
 
 
 
 
5

Operating income
 
 
 
 
 
$
4,919

Total assets
 
$
110,632

 
$
119,248

 
$
229,880

Capital spending (excluding business combinations)
 
$
376

 
$
637

 
$
1,013

Property, plant and equipment, accumulated depreciation and depreciation expense by reporting segment as of and for the three months ended March 31, 2013 are as follows (in thousands):
 
 
Pipelines and Transportation
 
Wholesale Marketing and Terminalling
 
Consolidated
Property, plant and equipment
 
$
126,773

 
$
46,803

 
$
173,576

Less: Accumulated depreciation
 
(9,628
)
 
(11,213
)
 
(20,841
)
Property, plant and equipment, net
 
$
117,145

 
$
35,590

 
$
152,735

Depreciation expense for the three months ended March 31, 2013
 
$
1,605

 
$
446

 
$
2,051

Depreciation expense for the three months ended March 31, 2012
 
$
1,321

 
$
547

 
$
1,868


In accordance with ASC 360, Property, Plant & Equipment, we evaluate the realizability of property, plant and equipment as events occur that might indicate potential impairment.