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Segment Data | 12 Months Ended
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Dec. 31, 2017
Segment Reporting [Abstract] |
Segment Data | Segment Data We aggregate our operating segments into two 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 wholesale marketing and terminalling services to Delek's refining operations and independent third parties.
Our operating segments adhere to the accounting policies used for our consolidated financial statements, as described in Note 2. 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 goods sold and operating expenses. During the year ended December 31, 2015, we acquired the Logistics Assets from Delek. Our historical financial statements have been retrospectively adjusted as appropriate to reflect the results of operations attributable to the Logistics Assets as if we owned the assets for all periods presented. The results of the Logistics 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,
|  | 2017 |  | 2016 |  | 2015
Pipelines and Transportation |  |  |  |  |  |
Net sales: |  |  |  |  |  |
Affiliate |  | 109,298 |  |  | $ | 103,749 |  |  | 102,551 |
Third party |  | 12,431 |  |  | 18,423 |  |  | 28,828 |
Total pipelines and transportation |  | 121,729 |  |  | 122,172 |  |  | 131,379 |
Operating costs and expenses: |  |  |  |  |  |
Cost of goods sold |  | 18,210 |  |  | 19,425 |  |  | 19,607 |
Operating expenses |  | 33,240 |  |  | 29,235 |  |  | 33,751 |
Segment contribution margin |  | $ | 70,279 |  |  | $ | 73,512 |  |  | $ | 78,021 |
Capital spending (excluding business combinations) |  | $ | 14,262 |  |  | $ | 8,478 |  |  | $ | 16,030 |
Wholesale Marketing and Terminalling |  |  |  |  |  |
Net sales: |  |  |  |  |  |
Affiliate |  | 46,982 |  |  | 45,815 |  |  | 50,013 |
Third party |  | 369,364 |  |  | 280,072 |  |  | 408,277 |
Total wholesale marketing and terminalling |  | 416,346 |  |  | 325,887 |  |  | 458,290 |
Operating costs and expenses: |  |  |  |  |  |
Cost of goods sold |  | 354,680 |  |  | 282,733 |  |  | 416,697 |
Operating expenses |  | 10,034 |  |  | 7,963 |  |  | 11,172 |
Segment contribution margin |  | $ | 51,632 |  |  | $ | 35,191 |  |  | $ | 30,421 |
Capital spending (excluding business combinations) |  | $ | 4,141 |  |  | $ | 3,289 |  |  | $ | 6,397 |
Consolidated |  |  |  |  |  |
Net sales: |  |  |  |  |  |
Affiliate |  | $ | 156,280 |  |  | $ | 149,564 |  |  | $ | 152,564 |
Third party |  | 381,795 |  |  | 298,495 |  |  | 437,105 |
Total Consolidated |  | 538,075 |  |  | 448,059 |  |  | 589,669 |
Operating costs and expenses: |  |  |  |  |  |
Cost of goods sold |  | 372,890 |  |  | 302,158 |  |  | 436,304 |
Operating expenses |  | 43,274 |  |  | 37,198 |  |  | 44,923 |
Contribution margin |  | 121,911 |  |  | 108,703 |  |  | 108,442 |
General and administrative expenses |  | 11,840 |  |  | 10,256 |  |  | 11,384 |
Depreciation and amortization |  | 21,914 |  |  | 20,813 |  |  | 19,692 |
(Gain) loss on asset disposals |  | (20 | ) |  | (16 | ) |  | 104 |
Operating income |  | $ | 88,177 |  |  | $ | 77,650 |  |  | $ | 77,262 |
Capital spending (excluding business combinations) |  | $ | 18,403 |  |  | $ | 11,767 |  |  | $ | 22,427 |
The following table summarizes the total assets for each segment as of December 31, 2017 and 2016 (in thousands).
|  | Year Ended December 31,
|  | 2017 |  | 2016
Pipelines and transportation |  | $ | 349,351 |  |  | $ | 337,349 |
Wholesale marketing and terminalling |  | 94,179 |  |  | 78,198 |
Total Assets |  | $ | 443,530 |  |  | $ | 415,547 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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