v3.5.0.2
Operating Segments (Notes)
 9 Months Ended
Sep. 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.

SEGMENT INFORMATION (in millions)

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2016
 
2015
 
2016
 
2015
Revenues
 
 
 
 
 
 
 
Gathering:
 
 
 
 
 
 
 
Affiliate
$
21

 
$
18

 
$
61

 
$
71

Third-party
61

 
69

 
194

 
182

Total Gathering
82

 
87

 
255

 
253

Processing:
 
 
 
 
 
 
 
Affiliate
23

 
26

 
74

 
71

Third-party
46

 
45

 
134

 
134

Total Processing
69

 
71

 
208

 
205

Terminalling and Transportation:
 
 
 
 
 
 
 
Affiliate
140

 
108

 
386

 
312

Third-party
17

 
16

 
52

 
50

Total Terminalling and Transportation
157

 
124

 
438

 
362

Total Segment Revenues
$
308

 
$
282

 
$
901

 
$
820

 
 
 
 
 
 
 
 
Segment Operating Income
 
 
 
 
 
 
 
Gathering
$
31

 
$
42

 
$
107

 
$
121

Processing
29

 
29

 
85

 
77

Terminalling and Transportation
85

 
51

 
226

 
157

Total Segment Operating Income
145

 
122

 
418

 
355

Unallocated general and administrative expenses
(12
)
 
(16
)
 
(37
)
 
(43
)
Interest and financing costs, net
(49
)
 
(37
)
 
(138
)
 
(112
)
Equity in earnings of equity method investments
3

 
2

 
10

 
6

Other income, net
—

 
—

 
6

 
—

Net Earnings
$
87

 
$
71

 
$
259

 
$
206

 
 
 
 
 
 
 
 
Capital Expenditures
 
 
 
 
 
 
 
Gathering
$
21

 
$
72

 
$
67

 
$
177

Processing
2

 
5

 
15

 
10

Terminalling and Transportation
19

 
16

 
43

 
50

Total Capital Expenditures
$
42

 
$
93

 
$
125

 
$
237