v3.5.0.2
Segment Disclosures (Notes)
 6 Months Ended
Jun. 30, 2016
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Segment Disclosures
OPERATING SEGMENTS

Our revenues are derived from three operating segments: Gathering, Processing and Terminalling and Transportation. Our Gathering segment consists of crude oil and natural gas gathering systems in the Bakken Shale/Williston Basin area of North Dakota and Montana and the Green River Basin, Uinta Basin and Vermillion Basin in the states of Utah, Colorado and Wyoming. Our Processing segment consists of four gas processing complexes and one fractionation facility. Our Terminalling and Transportation segment consists of crude oil and refined products terminals and marine terminals, storage facilities for crude oil, refined products and petroleum coke handling, rail-car unloading facilities and pipelines, which transport products and crude oil.

Our revenues are generated from third-party contracts and from commercial agreements we have entered into with Tesoro, under which customers pay us fees for gathering crude oil and natural gas, processing natural gas and distributing, transporting and storing crude oil, refined products, natural gas and natural gas liquids. The commercial agreements with Tesoro are described in greater detail in Note 3 to our Annual Report on Form 10-K for the year ended December 31, 2015. We do not have any foreign operations.

Our operating segments are strategic business units that offer different services in various geographical locations. We evaluate the performance of each segment based on its respective operating income. Certain general and administrative expenses are excluded from segment operating income as they are not directly attributable to a specific operating segment. Identifiable assets are those used by the segment, whereas other assets are principally cash and other assets that are not associated with a specific operating segment.

SEGMENT INFORMATION (in millions)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Revenues
 
 
 
 
 
 
 
Gathering:
 
 
 
 
 
 
 
Affiliate
$
18

 
$
27

 
$
40

 
$
53

Third-party
64

 
62

 
133

 
113

Total Gathering
82

 
89

 
173

 
166

Processing:
 
 
 
 
 
 
 
Affiliate
25

 
25

 
51

 
45

Third-party
43

 
42

 
88

 
89

Total Processing
68

 
67

 
139

 
134

Terminalling and Transportation:
 
 
 
 
 
 
 
Affiliate
125

 
102

 
246

 
204

Third-party
18

 
17

 
35

 
34

Total Terminalling and Transportation
143

 
119

 
281

 
238

Total Segment Revenues
$
293

 
$
275

 
$
593

 
$
538

 
 
 
 
 
 
 
 
Segment Operating Income
 
 
 
 
 
 
 
Gathering
$
36

 
$
45

 
$
76

 
$
79

Processing
27

 
24

 
56

 
48

Terminalling and Transportation
75

 
50

 
144

 
108

Total Segment Operating Income
138

 
119

 
276

 
235

Unallocated general and administrative expenses
(13
)
 
(15
)
 
(25
)
 
(27
)
Interest and financing costs, net
(45
)
 
(38
)
 
(89
)
 
(75
)
Equity in earnings of unconsolidated affiliates
3

 
1

 
7

 
4

Other income, net
—

 
—

 
6

 
—

Net Earnings
$
83

 
$
67

 
$
175

 
$
137

 
 
 
 
 
 
 
 
Capital Expenditures
 
 
 
 
 
 
 
Gathering
$
21

 
$
54

 
$
46

 
$
105

Processing
8

 
4

 
13

 
5

Terminalling and Transportation
13

 
19

 
24

 
34

Total Capital Expenditures
$
42

 
$
77

 
$
83

 
$
144