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Segment Data
 3 Months Ended
Mar. 31, 2021
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 pipeline and transportation segment provide crude oil gathering and crude oil, intermediate and refined products transportation and storage services to Delek Holdings' refining operations and independent third parties.
•The wholesale marketing and terminalling segment provides marketing services for the refined products output of the Delek Holdings' refineries, engages in wholesale activity at our terminals and terminals owned by third parties, whereby we purchase light product for sale and exchange to third parties, and provides terminalling services at our refined products terminals to independent third parties and Delek Holdings.
Our operating segments adhere to the accounting policies 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 segment contribution margin. Segment contribution margin is defined as net revenues less cost of materials and other and operating expenses, excluding depreciation and amortization.
The following is a summary of business segment operating performance as measured by contribution margin for the periods indicated:
(in thousands)Three Months Ended March 31,
20212020
Pipelines and Transportation
Net revenues:
Affiliate$63,048 $38,502 
Third party1,927 9,465 
Total pipelines and transportation 64,975 47,967 
Cost of materials and other13,079 6,098 
Operating expenses (excluding depreciation and amortization)10,172 11,456 
Segment contribution margin$41,724 $30,413 
Capital spending$5,845 $445 
Wholesale Marketing and Terminalling
Net revenues:
Affiliate (1)
$33,146 $68,197 
Third party54,792 47,237 
Total wholesale marketing and terminalling87,938 115,434 
Cost of materials and other68,092 95,195 
Operating expenses (excluding depreciation and amortization)3,884 3,288 
Segment contribution margin$15,962 $16,951 
Capital spending$1,954 $2,583 
Consolidated
Net revenues:
Affiliate$96,194 $106,699 
Third party56,719 56,702 
Total Consolidated152,913 163,401 
Cost of materials and other81,171 101,293 
Operating expenses (excluding depreciation and amortization presented below)14,056 14,744 
Contribution margin57,686 47,364 
General and administrative expenses4,860 6,130 
Depreciation and amortization10,739 6,299 
Other operating income, net(83)(107)
Operating income$42,170 $35,042 
Capital spending$7,799 $3,028 
(1) Affiliate revenue for the wholesale marketing and terminalling segment is presented net of amortization expense pertaining to the Marketing Contract Intangible Acquisition. See Note 3 for additional information.
The following table summarizes the total assets for each segment as of March 31, 2021 and December 31, 2020 (in thousands). Assets for each segment include property, plant and equipment, equity method investments, intangible assets and inventory.
March 31, 2021December 31, 2020
Pipelines and transportation $705,262 $723,317 
Wholesale marketing and terminalling217,384 206,918 
Other26,224 26,182 
     Total assets$948,870 $956,417 

Property, plant and equipment and accumulated depreciation as of March 31, 2021 and depreciation expense by reporting segment for the three months ended March 31, 2021 were as follows (in thousands):
Pipelines and TransportationWholesale Marketing and TerminallingConsolidated
Property, plant and equipment$586,119 $113,433 $699,552 
Less: accumulated depreciation(184,318)(53,177)(237,495)
Property, plant and equipment, net$401,801 $60,256 $462,057 
Depreciation expense for the three months ended March 31, 2021$8,827 $1,912 $10,739 
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. There were no indicators of impairment of our property, plant and equipment as of March 31, 2021.