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Business Segment Information | 9 Months Ended
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Sep. 30, 2013
Segment Reporting [Abstract] |
Business Segment Information | 9. Business Segment Information Our operations consist of three operating segments:
• | Pipeline Transportation – interstate, intrastate and offshore crude oil, and to a lesser extent, CO2;
• | Refinery Services – processing high sulfur (or “sour”) gas streams as part of refining operations to remove the sulfur and selling the related by-product, NaHS and;
• | Supply and Logistics – terminaling, blending, storing, marketing, and transporting crude oil and petroleum products (primarily fuel oil, asphalt, and other heavy refined products) and, on a smaller scale, CO2.
Substantially all of our revenues are derived from, and substantially all of our assets are located in, the United States. We define Segment Margin as revenues less product costs, operating expenses (excluding non-cash charges, such as depreciation and amortization), and segment general and administrative expenses, plus our equity in distributable cash generated by our equity investees. In addition, our Segment Margin definition excludes the non-cash effects of our stock appreciation rights plan and includes the non-income portion of payments received under direct financing leases. Our chief operating decision maker (our Chief Executive Officer) evaluates segment performance based on a variety of measures including Segment Margin, segment volumes, where relevant, and capital investment. Segment information for the periods presented below was as follows:
| Pipeline Transportation |  | Refinery Services |  | Supply & Logistics |  | Total
Three Months Ended September 30, 2013 |  |  |  |  |  |  |
Segment margin (a) | $ | 29,860 |  |  | $ | 19,163 |  |  | $ | 15,801 |  |  | $ | 64,824 |
Capital expenditures (b) | $ | 38,514 |  |  | $ | 632 |  |  | $ | 290,942 |  |  | $ | 330,088 |
Revenues: |  |  |  |  |  |  |
External customers | $ | 16,636 |  |  | $ | 55,025 |  |  | $ | 1,188,157 |  |  | $ | 1,259,818 |
Intersegment (c) | 6,581 |  |  | (2,615 | ) |  | (3,966 | ) |  | — |
Total revenues of reportable segments | $ | 23,217 |  |  | $ | 52,410 |  |  | $ | 1,184,191 |  |  | $ | 1,259,818 |
Three Months Ended September 30, 2012 |  |  |  |  |  |  |
Segment margin (a) | $ | 23,295 |  |  | $ | 18,983 |  |  | $ | 23,651 |  |  | $ | 65,929 |
Capital expenditures (b) | $ | 21,764 |  |  | $ | 1,025 |  |  | $ | 14,410 |  |  | $ | 37,199 |
Revenues: |  |  |  |  |  |  |
External customers | $ | 16,190 |  |  | $ | 50,378 |  |  | $ | 975,269 |  |  | $ | 1,041,837 |
Intersegment (c) | 2,974 |  |  | (2,401 | ) |  | (573 | ) |  | — |
Total revenues of reportable segments | $ | 19,164 |  |  | $ | 47,977 |  |  | $ | 974,696 |  |  | $ | 1,041,837 |
Nine Months Ended September 30, 2013 |  |  |  |  |  |  |
Segment margin (a) | $ | 81,512 |  |  | $ | 55,824 |  |  | $ | 69,995 |  |  | $ | 207,331 |
Capital expenditures (b) | $ | 159,922 |  |  | $ | 2,296 |  |  | $ | 347,001 |  |  | $ | 509,219 |
Revenues: |  |  |  |  |  |  |
External customers | $ | 53,121 |  |  | $ | 161,492 |  |  | $ | 3,406,076 |  |  | $ | 3,620,689 |
Intersegment (c) | 13,412 |  |  | (8,122 | ) |  | (5,290 | ) |  | — |
Total revenues of reportable segments | $ | 66,533 |  |  | $ | 153,370 |  |  | $ | 3,400,786 |  |  | $ | 3,620,689 |
Nine Months Ended September 30, 2012 |  |  |  |  |  |  |
Segment margin (a) | $ | 69,427 |  |  | $ | 53,510 |  |  | $ | 66,075 |  |  | $ | 189,012 |
Capital expenditures (b) | $ | 300,093 |  |  | $ | 2,295 |  |  | $ | 77,414 |  |  | $ | 379,802 |
Revenues: |  |  |  |  |  |  |
External customers | $ | 44,564 |  |  | $ | 151,326 |  |  | $ | 2,820,095 |  |  | $ | 3,015,985 |
Intersegment (c) | 11,230 |  |  | (6,984 | ) |  | (4,246 | ) |  | — |
Total revenues of reportable segments | $ | 55,794 |  |  | $ | 144,342 |  |  | $ | 2,815,849 |  |  | $ | 3,015,985 |
Total assets by reportable segment were as follows:
| September 30, 2013 |  | December 31, 2012
Pipeline transportation | $ | 1,024,367 |  |  | $ | 890,652 |
Refinery services | 414,102 |  |  | 414,170 |
Supply and logistics | 1,179,791 |  |  | 750,347 |
Other assets | 61,310 |  |  | 54,495 |
Total consolidated assets | $ | 2,679,570 |  |  | $ | 2,109,664 |
(a) | A reconciliation of Segment Margin to income before income taxes for the periods presented is as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
Segment Margin | $ | 64,824 |  |  | $ | 65,929 |  |  | $ | 207,331 |  |  | $ | 189,012 |
Corporate general and administrative expenses | (11,113 | ) |  | (9,428 | ) |  | (32,255 | ) |  | (26,756 | )
Depreciation and amortization | (16,066 | ) |  | (14,838 | ) |  | (46,789 | ) |  | (45,447 | )
Interest expense | (12,587 | ) |  | (9,873 | ) |  | (36,282 | ) |  | (30,697 | )
Distributable cash from equity investees in excess of equity in earnings | (5,204 | ) |  | (5,613 | ) |  | (16,659 | ) |  | (19,098 | )
Non-cash items not included in segment margin | 507 |  |  | (2,222 | ) |  | (2,828 | ) |  | (2,475 | )
Cash payments from direct financing leases in excess of earnings | (1,291 | ) |  | (1,278 | ) |  | (3,786 | ) |  | (3,748 | )
Income before income taxes | $ | 19,070 |  |  | $ | 22,677 |  |  | $ | 68,732 |  |  | $ | 60,791 |
(b) | Capital expenditures include maintenance and growth capital expenditures, such as fixed asset additions (including enhancements to existing facilities and construction of internal growth projects) as well as acquisitions of businesses and interests in equity investees. In addition to construction of internal growth projects, capital spending in our pipeline transportation segment included $5.2 million and $71.4 million during the three and nine months ended September 30, 2013 and $5.7 million and $57.1 million during the three and nine months ended September 30, 2012 representing capital contributions to our SEKCO equity investee to fund our share of the construction costs for its pipeline. For the three and nine months ended September 30, 2013, capital spending in our supply and logistics segment also included $230.9 million for the acquisition of our offshore marine transportation assets. For the nine months ended September 30, 2012, capital spending in our pipeline transportation segment also included $205.6 million for the acquisition of interests in several Gulf of Mexico pipelines.
(c) | Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.

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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 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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