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Segment Data (Notes)
 12 Months Ended
Dec. 31, 2014
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, and crude oil, intermediate and finished products 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 segment contribution margin. Segment contribution margin is defined as net sales less cost of sales and operating expenses, excluding depreciation and amortization.
On February 10, 2014, we acquired the El Dorado Terminal and Tank Assets and on July 26, 2013, we acquired the Tyler Terminal and Tank Assets. Our and our Predecessors' historical financial statements have been retrospectively adjusted to reflect the results of operations attributable to the El Dorado Terminal and Tank Assets and the Tyler Terminal and Tank Assets as if we owned the assets for all periods presented. The results of the El Dorado Terminal and the Tyler Terminal are included in the wholesale marketing and terminalling segment. The results of the El Dorado Tank Assets and the Tyler Tank Assets are included in the pipelines and transportation segment.
The following is a summary of business segment operating performance as measured by contribution margin for the period indicated (in thousands):
 
 
Year Ended December 31,
 
 
2014 (1) (3)
 
2013 (2) (4)
 
2012 (2) (4)
Pipelines and Transportation
 
 
 
 
 
 
     Net Sales:
 
 
 
 
 
 
          Affiliate
 
$
80,683

 
$
51,878

 
$
30,145

         Third-Party
 
10,665

 
8,359

 
3,394

            Total Pipelines and Transportation
 
$
91,348

 
$
60,237

 
$
33,539

     Operating costs and expenses:
 
 
 
 
 
 
     Cost of goods sold
 
4,294

 
764

 
—

     Operating expenses
 
31,300

 
27,465

 
32,359

     Segment contribution margin
 
$
55,754

 
$
32,008

 
$
1,180

 Capital spending (excluding business combinations)
 
$
3,768

 
$
9,621

 
$
23,845

 
 
 
 
 
 
 
Wholesale Marketing and Terminalling
 
 
 
 
 
 
     Net Sales:
 
 
 
 
 
 
          Affiliate
 
$
33,900

 
$
26,295

 
$
13,469

         Third-Party
 
716,005

 
820,896

 
975,578

            Total Wholesale Marketing and Terminalling
 
$
749,905

 
$
847,191

 
$
989,047

     Operating costs and expenses:
 
 
 
 
 
 
     Cost of goods sold
 
692,927

 
810,600

 
959,434

     Operating expenses
 
7,486

 
8,175

 
7,061

     Segment contribution margin
 
$
49,492

 
$
28,416

 
$
22,552

 Capital spending (excluding business combinations)
 
$
3,364

 
$
3,041

 
$
6,971

 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
     Net Sales:
 
 
 
 
 
 
          Affiliate
 
$
114,583

 
$
78,173

 
$
43,614

         Third-Party
 
726,670

 
829,255

 
978,972

            Total Consolidated
 
$
841,253

 
$
907,428

 
$
1,022,586

     Operating costs and expenses:
 
 
 
 
 
 
     Cost of goods sold
 
697,221

 
811,364

 
959,434

     Operating expenses
 
38,786

 
35,640

 
39,420

     Contribution margin
 
105,246

 
60,424

 
23,732

     General and administrative expenses
 
10,616

 
7,526

 
9,856

     Depreciation and amortization
 
14,705

 
13,738

 
11,343

     Loss on asset disposals
 
83

 
166

 
9

     Operating income
 
$
79,842

 
$
38,994

 
$
2,524

 Capital spending (excluding business combinations)
 
$
7,132

 
$
12,662

 
$
30,816

            

(1) The information presented includes the results of operations of the El Dorado Terminal and Tank Assets. Prior to the El Dorado Acquisition, the El Dorado Predecessor did not record all revenues for intercompany gathering, pipeline transportation, terminalling and storage services.

(2) The information presented includes the results of operations of the El Dorado Terminal and Tank Assets and the Tyler Terminal and Tank Assets. Prior to the El Dorado Acquisition and the Tyler Acquisition, the El Dorado Predecessor and the Tyler Predecessor did not record all revenues for intercompany gathering, pipeline transportation, terminalling and storage services.

(3) Capital spending includes expenditures incurred in connection with the assets acquired in the El Dorado Acquisition

(4) Capital spending includes expenditures incurred in connection with the assets acquired in the El Dorado Acquisition and the Tyler Acquisition.
The following table summarizes the total assets for each segment as of December 31, 2014 and December 31, 2013 (in thousands).
 
 
Year Ended December 31,
 
 
2014
 
2013
Pipelines and Transportation
 
210,846

 
195,984

Wholesale Marketing and Terminalling
 
100,993

 
105,360

     Total Assets
 
$
311,839

 
$
301,344