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Segment Data (Notes)
 12 Months Ended
Dec. 31, 2015
Segment Data [Abstract]  
Segment Data
Segment Data

We aggregate our operating units into two reportable reportable segments: (i) pipelines and transportation and (ii) wholesale marketing and terminalling.

•
The assets and investments reported in the pipelines and transportation segment provide 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.

Our historical financial statements have been retrospectively adjusted as appropriate to reflect the results of operations attributable to the Logistics Assets, 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 Logistics Assets, the El Dorado Tank Assets and the Tyler Tank Assets are included in the pipelines and transportation segment. The results of the El Dorado Terminal and the Tyler Terminal are included in the wholesale marketing and terminalling 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,
 
 
2015
 
2014
 
2013
Pipelines and Transportation
 
 
 
 
 
 
     Net Sales:
 
 
 
 
 
 
          Affiliate
 
$
102,551

 
$
80,683

 
$
51,878

         Third-Party
 
28,828

 
10,665

 
8,359

            Total Pipelines and Transportation
 
131,379

 
91,348

 
60,237

     Operating costs and expenses:
 
 
 
 
 
 
     Cost of goods sold
 
19,607

 
4,294

 
764

     Operating expenses (1) (2)
 
33,751

 
31,979

 
27,728

     Segment contribution margin
 
$
78,021

 
$
55,075

 
$
31,745

 Capital spending (excluding business combinations) (1) (2)
 
$
16,030

 
$
5,804

 
$
22,696

 
 
 
 
 
 
 
Wholesale Marketing and Terminalling
 
 
 
 
 
 
     Net Sales:
 
 
 
 
 
 
          Affiliate
 
$
50,013

 
$
33,900

 
$
26,295

         Third-Party
 
408,277

 
716,005

 
820,896

            Total Wholesale Marketing and Terminalling
 
458,290

 
749,905

 
847,191

     Operating costs and expenses:
 
 
 
 
 
 
     Cost of goods sold
 
416,697

 
692,927

 
810,600

     Operating expenses
 
11,172

 
7,486

 
8,175

     Segment contribution margin
 
$
30,421

 
$
49,492

 
$
28,416

 Capital spending (excluding business combinations)
 
$
6,397

 
$
3,364

 
$
3,041

 
 
 
 
 
 
 
Consolidated
 
 
 
 
 
 
     Net Sales:
 
 
 
 
 
 
          Affiliate
 
$
152,564

 
$
114,583

 
$
78,173

         Third-Party
 
437,105

 
726,670

 
829,255

            Total Consolidated
 
589,669

 
841,253

 
907,428

     Operating costs and expenses:
 
 
 
 
 
 
     Cost of goods sold
 
436,304

 
697,221

 
811,364

     Operating expenses (1) (2)
 
44,923

 
39,465

 
35,903

     Contribution margin
 
108,442

 
104,567

 
60,161

     General and administrative expenses
 
11,384

 
10,616

 
7,526

     Depreciation and amortization
 
19,692

 
15,022

 
13,738

     Loss on asset disposals
 
104

 
83

 
166

     Operating income
 
$
77,262

 
$
78,846

 
$
38,731

 Capital spending (excluding business combinations) (1) (2)
 
$
22,427

 
$
9,168

 
$
25,737

            

(1) Includes operating expenses and capital spending expenditures incurred in connection with the El Dorado Offloading Racks Acquisition and the Tyler Crude Tank Acquisition for the year ended December 31, 2015.

(2) Adjusted to include operating expenses and capital spending expenditures incurred in connection with the El Dorado Offloading Racks Acquisition and the Tyler Crude Tank Acquisition for the year ended December 31, 2015.

The following table summarizes the total assets for each segment as of December 31, 2015 and 2014 (in thousands).

 
 
Year Ended December 31,
 
 
2015
 
2014 (1)
Pipelines and Transportation
 
283,553

 
230,293

Wholesale Marketing and Terminalling
 
91,735

 
100,993

     Total Assets
 
$
375,288

 
$
331,286


            

(1) Adjusted to include the historical balances of the Logistics Assets Predecessor.