Our reportable segments are strategic business units that offer different products and services. Our segments are managed separately as each segment requires different marketing strategies and business knowledge. Management evaluates performance based on segment operating margin, which includes revenue from affiliates and third-party customers, operating expenses, cost of product sales, other operating (income) expense and earnings of non-controlled entities.

We believe that investors benefit from having access to the same financial measures used by management. Operating margin, which is presented in the following tables, is an important measure used by management to evaluate the economic performance of our core operations. Operating margin is not a GAAP measure, but the components of operating margin are computed using amounts that are determined in accordance with GAAP. A reconciliation of operating margin to operating profit, which is its nearest comparable GAAP financial measure, is included in the tables below (presented in thousands). Operating profit includes depreciation, amortization and impairment expense and general and administrative (“G&A”) expense that management does not consider when evaluating the core profitability of our separate operating segments.



	Three Months Ended June 30, 2019
	Refined Products			Crude Oil			Intersegment Eliminations			Total
Transportation and terminals revenue	$	347,630		$	160,116		$	(1,341	)	$	506,405
Product sales revenue	184,695			5,294			—			189,989
Affiliate management fee revenue	1,659			3,646			—			5,305
Total revenue	533,984			169,056			(1,341		)	701,699
Operating expenses	132,850			38,764			(2,685		)	168,929
Cost of product sales	148,166			4,710			—			152,876
Other operating (income) expense	(1,031		)	6,055			—			5,024
(Earnings) loss of non-controlled entities	2,950			(43,735		)	—			(40,785		)
Operating margin	251,049			163,262			1,344			415,655
Depreciation, amortization and impairment expense	44,637			16,549			1,344			62,530
G&A expense	37,560			14,823			—			52,383
Operating profit	$	168,852		$	131,890		$	—		$	300,742



	Three Months Ended June 30, 2020
	Refined Products			Crude Oil			Intersegment Eliminations			Total
Transportation and terminals revenue	$	279,759		$	133,637		$	(1,581	)	$	411,815
Product sales revenue	34,463			8,814			—			43,277
Affiliate management fee revenue	1,513			3,803			—			5,316
Total revenue	315,735			146,254			(1,581		)	460,408
Operating expenses	103,405			45,917			(3,215		)	146,107
Cost of product sales	45,616			4,893			—			50,509
Other operating (income) expense	(138		)	(3,775		)	—			(3,913		)
Earnings of non-controlled entities	(4,592		)	(29,097		)	—			(33,689		)
Operating margin	171,444			128,316			1,634			301,394
Depreciation, amortization and impairment expense	41,029			15,877			1,634			58,540
G&A expense	30,661			11,507			—			42,168
Operating profit	$	99,754		$	100,932		$	—		$	200,686



	Six Months Ended June 30, 2019
	Refined Products			Crude Oil			Intersegment Eliminations			Total
Transportation and terminals revenue	$	657,201		$	312,275		$	(2,279	)	$	967,197
Product sales revenue	341,977			11,007			—			352,984
Affiliate management fee revenue	3,321			7,132			—			10,453
Total revenue	1,002,499			330,414			(2,279		)	1,330,634
Operating expenses	235,542			84,470			(5,058		)	314,954
Cost of product sales	310,596			11,374			—			321,970
Other operating (income) expense	(6,399		)	4,482			—			(1,917		)
(Earnings) losses of non-controlled entities	3,997			(76,037		)	—			(72,040		)
Operating margin	458,763			306,125			2,779			767,667
Depreciation, amortization and impairment expense	89,064			32,558			2,779			124,401
G&A expense	70,373			28,005			—			98,378
Operating profit	$	299,326		$	245,562		$	—		$	544,888



	Six Months Ended June 30, 2020
	Refined Products			Crude Oil			Intersegment Eliminations			Total
Transportation and terminals revenue	$	594,078		$	279,295		$	(3,163	)	$	870,210
Product sales revenue	347,449			14,948			—			362,397
Affiliate management fee revenue	3,097			7,510			—			10,607
Total revenue	944,624			301,753			(3,163		)	1,243,214
Operating expenses	209,287			92,689			(6,361		)	295,615
Cost of product sales	278,958			20,787			—			299,745
Other operating (income) expense	(2,030		)	(1,372		)	—			(3,402		)
Earnings of non-controlled entities	(18,812		)	(58,537		)	—			(77,349		)
Operating margin	477,221			248,186			3,198			728,605
Depreciation, amortization and impairment expense	87,088			31,788			3,198			122,074
G&A expense	57,315			21,761			—			79,076
Operating profit	$	332,818		$	194,637		$	—		$	527,455