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Segment Data (Notes)
 12 Months Ended
Dec. 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.
•
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.
Our operating segments adhere to the accounting polices used for our consolidated financial statements, as described in Note 1. 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.
On July 26, 2013, we acquired the Tyler Terminal and Tank Assets from Delek. Our and our Predecessors' historical financial statements have been retrospectively adjusted to reflect the results of operations attributable to the Tyler Terminal and Tank Assets as if we owned the assets for all periods presented. The results of the Tyler Terminal and the Tyler Tank Assets are included in the wholesale marketing and terminalling segment and the pipelines and transportation segment, respectively.
The following is a summary of business segment operating performance as measured by contribution margin for the period indicated (in thousands):
 
 
As of and For the Year Ended December 31, 2013 (1)
(In thousands)
 
Pipelines and Transportation
 
Wholesale Marketing and Terminalling
 
Consolidated
Net sales (excluding intercompany fees and sales)
 
$
60,237

 
$
847,191

 
$
907,428

Operating costs and expenses:
 
 
 
 
 
 
Cost of goods sold
 
764

 
810,600

 
811,364

Operating expenses
 
22,903

 
7,399

 
30,302

Segment contribution margin
 
$
36,570

 
$
29,192

 
65,762

General and administrative expenses
 
 
 
 
 
6,856

Depreciation and amortization
 
 
 
 
 
12,436

Loss on disposal of assets
 
 
 
 
 
166

Operating income
 
 
 
 
 
$
46,304

Total assets
 
$
164,608

 
$
110,196

 
$
274,804

Capital spending (excluding business combinations) (2)
 
$
6,905

 
$
2,493

 
$
9,398

(1) The information presented includes the results of operations of the Tyler Predecessor. Prior to the completion of the Tyler Acquisition, our Predecessor did not record revenues for intercompany gathering, pipeline transportation, terminalling and storage services.

(2) Capital spending includes expenditures incurred in connection with the assets acquired in the Tyler Acquisition
 
 
As of and For the Year Ended December 31, 2012 (1)
 
 
Predecessors
(In thousands)
 
Pipelines and Transportation
 
Wholesale Marketing and Terminalling
 
Consolidated
Net sales (excluding intercompany fees and sales)
 
$
33,539

 
$
989,047

 
$
1,022,586

Operating costs and expenses:
 
 
 
 
 
 
Cost of goods sold
 
—

 
959,434

 
959,434

Operating expenses
 
24,155

 
6,242

 
30,397

Segment contribution margin
 
$
9,384

 
$
23,371

 
32,755

General and administrative expenses
 
 
 
 
 
9,150

Depreciation and amortization
 
 
 
 
 
10,120

Loss on disposal of assets
 
 
 
 
 
9

Operating income
 
 
 
 
 
$
13,476

Total assets
 
$
183,204

 
$
100,112

 
$
283,316

Capital spending (excluding business combinations) (2)
 
$
22,146

 
$
4,613

 
$
26,759


(1) 
The information presented is adjusted to include the results of operations of the Tyler Predecessor. Prior to the completion of the Offering and the Tyler Acquisition, our Predecessors did not record revenues for intercompany trucking, terminalling, storage and short-haul pipeline transportation services.

(2) 
Capital spending includes expenditures incurred in connection with the assets acquired in the Tyler Acquisition.

 
 
As of and For the Year Ended December 31, 2011 (1)
 
 
Predecessors
(In thousands)
 
Pipelines and Transportation (2) 
 
Wholesale Marketing and Terminalling
 
Consolidated
Net sales (excluding intercompany fees and sales)
 
$
21,878

 
$
722,201

 
$
744,079

Operating costs and expenses:
 
 
 
 
 
 
Cost of goods sold
 
—

 
700,505

 
700,505

Operating expenses
 
15,415

 
4,052

 
19,467

Segment contribution margin
 
$
6,463

 
$
17,644

 
24,107

General and administrative expenses
 
 
 
 
 
6,483

Depreciation and amortization
 
 
 
 
 
6,061

Gain on disposal of assets
 
 
 
 
 
(2
)
Operating income
 
 
 
 
 
$
11,565

Total assets
 
$
133,257

 
$
89,902

 
$
223,159

Capital spending (excluding business combinations) (3)
 
$
5,905

 
$
1,225

 
$
7,130



(1)
The information presented is adjusted to include the results of operations of the Tyler Predecessor. Prior to the completion of the Offering and the Tyler Acquisition, our Predecessors did not record revenues for intercompany trucking, terminalling, storage and short-haul pipeline transportation services.

(2)
The operating results presented are for the 247 days and 12 days, respectively, Delek operated the El Dorado Refinery and the Paline Pipeline System in 2011.
(3) 
Capital spending includes expenditures incurred in connection with the assets acquired in the Tyler Acquisition.