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Business Segment Information | 3 Months Ended
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Mar. 31, 2015
Segment Reporting [Abstract] |
Business Segment Information | 10. Business Segment Information In the fourth quarter of 2014, we reorganized our operating segments as a result of a change in the way our Chief Executive Officer, who is our chief operating decision maker, evaluates the performance of operations, develops strategy and allocates resources. The results of our marine transportation activities, formerly reported in the Supply and Logistics Segment, are now reported in our Marine Transportation Segment. In addition, the results of our offshore and onshore pipeline transportation activities, formerly reported in the Pipeline Transportation Segment, are now reported separately in our Onshore Pipeline Transportation Segment and Offshore Pipeline Transportation Segments. Our disclosures related to prior periods have been recast to reflect our reorganized segments. As a result of the above changes, we currently manage our businesses through five divisions that constitute our reportable segments:
• | Onshore Pipeline Transportation – transportation of crude oil, and to a lesser extent, CO 2;
• | Offshore Pipeline Transportation – offshore transportation of crude oil in the Gulf of Mexico;
• | 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;
• | Marine Transportation – marine transportation to provide waterborne transportation of petroleum products and crude oil throughout North America; 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, CO 2.
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 legacy 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:
| Onshore Pipeline Transportation |  | Offshore Pipeline Transportation |  | Refinery Services |  | Marine Transportation |  | Supply & Logistics |  | Total
Three Months Ended March 31, 2015 |  |  |  |  |  |  |  |  |  |  |
Segment Margin (a) | $ | 14,323 |  |  | $ | 25,198 |  |  | $ | 19,160 |  |  | $ | 25,693 |  |  | $ | 9,747 |  |  | $ | 94,121 |
Capital expenditures (b) | $ | 68,591 |  |  | $ | 2,053 |  |  | $ | 1,212 |  |  | $ | 16,576 |  |  | $ | 36,776 |  |  | $ | 125,208 |
Revenues: |  |  |  |  |  |  |  |  |  |  |
External customers | $ | 15,831 |  |  | $ | 790 |  |  | $ | 48,435 |  |  | $ | 54,640 |  |  | $ | 407,161 |  |  | $ | 526,857 |
Intersegment (c) | 3,237 |  |  | — |  |  | (2,311 | ) |  | 2,731 |  |  | (3,657 | ) |  | — |
Total revenues of reportable segments | $ | 19,068 |  |  | $ | 790 |  |  | $ | 46,124 |  |  | $ | 57,371 |  |  | $ | 403,504 |  |  | $ | 526,857 |
Three Months Ended March 31, 2014 |  |  |  |  |  |  |  |  |  |  |
Segment Margin (a) | $ | 14,689 |  |  | $ | 13,403 |  |  | $ | 20,872 |  |  | $ | 20,457 |  |  | $ | 7,930 |  |  | $ | 77,351 |
Capital expenditures (b) | $ | 23,896 |  |  | $ | 10,384 |  |  | $ | 302 |  |  | $ | 10,959 |  |  | $ | 57,237 |  |  | $ | 102,778 |
Revenues: |  |  |  |  |  |  |  |  |  |  |
External customers | $ | 15,503 |  |  | $ | 947 |  |  | $ | 57,107 |  |  | $ | 51,090 |  |  | $ | 895,072 |  |  | $ | 1,019,719 |
Intersegment (c) | 4,470 |  |  | — |  |  | (2,914 | ) |  | 5,203 |  |  | (6,759 | ) |  | — |
Total revenues of reportable segments | $ | 19,973 |  |  | $ | 947 |  |  | $ | 54,193 |  |  | $ | 56,293 |  |  | $ | 888,313 |  |  | $ | 1,019,719 |
Total assets by reportable segment were as follows:
| March 31, 2015 |  | December 31, 2014
Onshore pipeline transportation | $ | 491,072 |  |  | $ | 460,012 |
Offshore pipeline transportation | 637,412 |  |  | 645,668 |
Refinery services | 401,164 |  |  | 403,703 |
Marine transportation | 744,797 |  |  | 745,128 |
Supply and logistics | 934,699 |  |  | 907,189 |
Other assets | 62,996 |  |  | 68,674 |
Total consolidated assets | 3,272,140 |  |  | 3,230,374 |
(a) | A reconciliation of Segment Margin to net income for the periods is presented below.
(b) | Capital expenditures include maintenance and growth capital expenditures, such as fixed asset additions (including enhancements to existing facilities and construction of growth projects) as well as acquisitions of businesses and interests in equity investees. In addition to construction of growth projects, capital spending in our pipeline transportation segment included $1.8 million during the three months ended March 31, 2015 and $10.4 million during the three months ended March 31, 2014 representing capital contributions to our SEKCO equity investee to fund our share of the construction costs for its pipeline.
(c) | Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.
Reconciliation of Segment Margin to net income:
| Three Months Ended March 31,
| 2015 |  | 2014
Segment Margin | $ | 94,121 |  |  | $ | 77,351 |
Corporate general and administrative expenses | (12,299 | ) |  | (11,061 | )
Depreciation and amortization | (27,125 | ) |  | (19,280 | )
Interest expense | (19,215 | ) |  | (12,804 | )
Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income (1) | (10,383 | ) |  | (5,777 | )
Non-cash items not included in Segment Margin | (2,614 | ) |  | 3,325 |
Cash payments from direct financing leases in excess of earnings | (1,362 | ) |  | (1,338 | )
Income tax expense | (908 | ) |  | (641 | )
Net income | 20,215 |  |  | 29,775 |
(1) | Includes distributions attributable to the quarter and received during or promptly following such quarter.

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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 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 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 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 4: 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 5: 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 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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