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Segment Data
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Data Segment Data
We aggregate our operating segments into three reportable segments: (i) pipelines and transportation; (ii) wholesale marketing and terminalling; and (iii) investment in pipeline joint ventures.
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, with the exception of investments in pipeline joint ventures segment, which is measured based on net income. 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, with the exception of investments in pipeline joint ventures segment, which is measured based on net income, for the periods indicated (in thousands):
(in thousands)Three Months Ended March 31,
20222021
Pipelines and Transportation
Net revenues:
Affiliate$71,023 $63,048 
Third party4,782 1,927 
Total pipelines and transportation 75,805 64,975 
Cost of materials and other19,602 13,079 
Operating expenses (excluding depreciation and amortization)12,958 10,172 
Segment contribution margin$43,245 $41,724 
Capital spending (1)
$8,149 $5,845 
Wholesale Marketing and Terminalling
Net revenues:
Affiliate (2)
$52,731 $33,146 
Third party78,045 54,792 
Total wholesale marketing and terminalling130,776 87,938 
Cost of materials and other106,592 68,092 
Operating expenses (excluding depreciation and amortization)5,149 4,639 
Segment contribution margin$19,035 $15,207 
Capital spending (1)
$937 $1,954 
Investments in Pipeline Joint Ventures
Income from equity method investments$(7,026)$(4,049)
Equity method investments contributions$— $(1,379)
Consolidated
Net revenues:
Affiliate$123,754 $96,194 
Third party82,827 56,719 
Total Consolidated206,581 152,913 
Cost of materials and other126,194 81,171 
Operating expenses (excluding depreciation and amortization presented below)18,107 14,811 
Contribution margin62,280 56,931 
General and administrative expenses5,095 4,105 
Depreciation and amortization10,335 10,739 
Other operating expense (income), net12 (83)
Operating income46,838 42,170 
Interest expense, net14,250 9,737 
Income from equity method investments(7,026)(4,049)
Other (income) expense, net(1)31 
Total non-operating expenses, net7,223 5,719 
Income before income tax expense39,615 36,451 
Income tax expense101 184 
Net income attributable to partners$39,514 $36,267 
Capital spending (1)
$9,086 $7,799 
(1) There were no capital contributions to equity method investments for the three months ended March 31, 2022. Capital spending for the three months ended March 31, 2021 excludes contributions to equity method investments in the amount of $1.4 million.
(2) Affiliate revenue for the wholesale marketing and terminalling segment is presented net of amortization expense related to a customer contract intangible asset. See Note 3 for additional information.
The following table summarizes the total assets for each segment as of March 31, 2022 and December 31, 2021 (in thousands). Assets for each segment include property, plant and equipment, equity method investments, intangible assets and inventory.
March 31, 2022December 31, 2021
Pipelines and transportation $455,145 $452,690 
Wholesale marketing and terminalling205,686 211,723 
Investments in pipeline joint ventures249,893 250,030 
Other (1)
24,542 20,628 
     Total assets935,266 $935,071 
(1) Other includes cash and cash equivalents and related party receivables and other assets which are recorded at the corporate level.
Property, plant and equipment, accumulated depreciation and depreciation expense for the pipelines and transportation and wholesale marketing and terminalling reportable segments as of and for the three months ended March 31, 2022 were as follows (in thousands):
Pipelines and TransportationWholesale Marketing and TerminallingConsolidated
Property, plant and equipment$604,323 $120,598 $724,921 
Less: accumulated depreciation(213,750)(62,837)(276,587)
Property, plant and equipment, net$390,573 $57,761 $448,334 
Depreciation expense for the three months ended March 31, 2022$7,937 $2,398 $10,335 
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, 2022.