v3.5.0.2
Segment Disclosures (Notes)
 12 Months Ended
Dec. 31, 2015
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. In 2014, we introduced a new reporting segment (Processing) for the processing assets acquired in the Rockies Natural Gas Business Acquisition. In addition we modified our previous Crude Oil Gathering segment to encompass all gathering operations, including the natural gas transmission assets acquired in the Rockies Natural Gas Business Acquisition. See Note 1 for a description of our operating segments and assets.

Our revenues are generated from commercial agreements we have entered into with Tesoro, under which Tesoro pays us fees, and from third-party contracts for gathering crude oil and natural gas, processing natural gas and distributing, transporting and storing crude oil, refined products, natural gas and NGLs. The commercial agreements with Tesoro are described in Note 3. We do not have any foreign operations.

The operating segments adhere to the accounting polices used for our combined consolidated financial statements, as described in Note 1. Our operating segments are strategic business units that offer different services in different geographical locations. We evaluate the performance of each segment based on its respective operating income. Certain general and administrative expenses and interest and financing costs 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, deposits and other assets that are not associated with a specific operating segment.

Segment information relating to continuing operations is as follows:
 
Years Ended December 31,
 
2015
 
2014
 
2013
 
(In millions)
Revenues
 
 
 
 
 
Gathering:
 
 
 
 
 
Affiliate
$
89

 
$
105

 
$
88

Third-party
250

 
30

 
2

Total Gathering
339

 
135

 
90

Processing:
 
 
 
 
 
Affiliate
96

 
7

 
—

Third-party
182

 
16

 
—

Total Processing
278

 
23

 
—

Terminalling and Transportation:
 
 
 
 
 
Affiliate (a)
430

 
385

 
185

Third-party
65

 
57

 
38

Total Terminalling and Transportation
495

 
442

 
223

Total Segment Revenues
$
1,112

 
$
600

 
$
313

Segment Operating Income
 
 
 
 
 
Gathering
$
142

 
$
47

 
$
34

Processing
105

 
6

 
—

Terminalling and Transportation
221

 
167

 
40

Total Segment Operating Income
468

 
220

 
74

Unallocated general and administrative expenses
(54
)
 
(39
)
 
(17
)
Interest and financing costs, net
(150
)
 
(109
)
 
(39
)
Equity in earnings of unconsolidated affiliates
7

 
1

 
—

Earnings Before Income Taxes
$
271

 
$
73

 
$
18

 
 
 
 
 
 
Capital Expenditures
 
 
 
 
 
Gathering
$
213

 
$
156

 
$
52

Processing
15

 
4

 
—

Terminalling and Transportation
68

 
90

 
34

Total Capital Expenditures
$
296

 
$
250

 
$
86

____________
(a)
Our Predecessors did not record revenue for transactions with Tesoro in the Terminalling and Transportation segment for assets acquired in the Acquisitions from Tesoro prior to the effective date of each acquisition, except for the RCA tariffs charged to Tesoro on the refined products pipeline included in the acquisition of the West Coast Logistics Assets.

Total identifiable assets by operating segment were as follows (in millions):
 
December 31,
 
2015
 
2014
Identifiable Assets
 
 
 
Gathering
$
1,850

 
$
1,694

Processing
1,619

 
1,612

Terminalling and Transportation
1,419

 
1,406

Other
21

 
107

Total Identifiable Assets
$
4,909

 
$
4,819