| SEGMENT INFORMATION |
SEGMENT INFORMATION Our reportable business segments consist of storage, transportation, and asphalt and fuels marketing. Our segments represent strategic business units that offer different services and products. We evaluate the performance of each segment based on its respective operating income, before general and administrative expenses and certain non-segmental depreciation and amortization expense. General and administrative expenses are not allocated to the operating segments since those expenses relate primarily to the overall management at the entity level. Our principal operations include terminalling and storage of petroleum products, the transportation of petroleum products and anhydrous ammonia, and petroleum refining and marketing. Intersegment revenues result from storage and throughput agreements with related parties at lease rates consistent with rates charged to third parties for storage and at pipeline tariff rates based upon the applicable published tariff. Results of operations for the reportable segments were as follows: | | | | | | | | | | | | | | Year Ended December 31, | | 2011 | | 2010 | | 2009 | | (Thousands of Dollars) | Revenues: | | | | | | Storage: | | | | | | Third parties | $ | 513,450 |
| | $ | 475,624 |
| | $ | 444,535 |
| Intersegment | 52,282 |
| | 44,214 |
| | 43,037 |
| Related party | 1,039 |
| | — |
| | — |
| Total storage | 566,771 |
| | 519,838 |
| | 487,572 |
| Transportation: | | | | | | Third parties | 311,449 |
| | 315,690 |
| | 300,814 |
| Intersegment | 65 |
| | 382 |
| | 1,256 |
| Total transportation | 311,514 |
| | 316,072 |
| | 302,070 |
| Asphalt and fuels marketing: | | | | | | Third parties | 5,749,317 |
| | 3,611,747 |
| | 3,110,522 |
| Intersegment | 9,782 |
| | 4,143 |
| | — |
| Total asphalt and fuels marketing | 5,759,099 |
| | 3,615,890 |
| | 3,110,522 |
| Consolidation and intersegment eliminations | (62,129 | ) | | (48,739 | ) | | (44,293 | ) | Total revenues | $ | 6,575,255 |
| | $ | 4,403,061 |
| | $ | 3,855,871 |
| | | | | | | Depreciation and amortization expense: | | | | | | Storage | $ | 87,737 |
| | $ | 77,071 |
| | $ | 70,888 |
| Transportation | 51,175 |
| | 50,617 |
| | 50,528 |
| Asphalt and fuels marketing | 22,636 |
| | 20,257 |
| | 19,463 |
| Total segment depreciation and amortization expense | 161,548 |
| | 147,945 |
| | 140,879 |
| Other depreciation and amortization expense | 6,738 |
| | 5,857 |
| | 4,864 |
| Total depreciation and amortization expense | $ | 168,286 |
| | $ | 153,802 |
| | $ | 145,743 |
| | | | | | | Operating income: | | | | | | Storage | $ | 193,395 |
| | $ | 178,947 |
| | $ | 171,245 |
| Transportation | 145,613 |
| | 148,571 |
| | 139,869 |
| Asphalt and fuels marketing | 85,229 |
| | 90,861 |
| | 60,629 |
| Consolidation and intersegment eliminations | (52 | ) | | 276 |
| | 1,170 |
| Total segment operating income | 424,185 |
| | 418,655 |
| | 372,913 |
| Less general and administrative expenses | 103,453 |
| | 110,241 |
| | 94,733 |
| Less other depreciation and amortization expense | 6,738 |
| | 5,857 |
| | 4,864 |
| Total operating income | $ | 313,994 |
| | $ | 302,557 |
| | $ | 273,316 |
|
Revenues by geographic area are shown in the table below. | | | | | | | | | | | | | | Year Ended December 31, | | 2011 | | 2010 | | 2009 | | (Thousands of Dollars) | United States | $ | 4,834,250 |
| | $ | 3,326,674 |
| | $ | 2,971,961 |
| Netherlands (a) | 1,564,062 |
| | 914,144 |
| | 732,764 |
| Other | 176,943 |
| | 162,243 |
| | 151,146 |
| Consolidated revenues | $ | 6,575,255 |
| | $ | 4,403,061 |
| | $ | 3,855,871 |
|
| | (a) | Effective January 1, 2011, the Netherland Antilles was dissolved and St. Eustatius became part of the Netherlands. Accordingly, revenues for St. Eustatius are now included with revenues for the Netherlands. Previous periods have been restated to conform to this presentation. |
For the year ended December 31, 2011, Valero Energy Corporation accounted for approximately 10%, or $684.1 million, of our consolidated revenues, which were included in all of our reportable business segments. For the years ended December 31, 2010 and 2009, no single customer accounted for 10% or more of our consolidated revenues. Long-lived assets include property, plant and equipment, intangible assets subject to amortization and certain long-lived assets included in “Other long-term assets, net” in the consolidated balance sheets. Total amounts of long-lived assets by geographic area were as follows: | | | | | | | | | | December 31, | | 2011 | | 2010 | | (Thousands of Dollars) | United States | $ | 3,166,784 |
| | $ | 3,010,753 |
| Netherlands (a) | 446,855 |
| | 430,569 |
| Other | 219,911 |
| | 192,294 |
| Consolidated long-lived assets | $ | 3,833,550 |
| | $ | 3,633,616 |
|
| | (a) | Effective January 1, 2011, the Netherland Antilles was dissolved and St. Eustatius became part of the Netherlands. Accordingly, revenues for St. Eustatius are now included with revenues for the Netherlands. Previous periods have been restated to conform to this presentation. |
Total assets by reportable segment were as follows: | | | | | | | | | | December 31, | | 2011 | | 2010 | | (Thousands of Dollars) | Storage | $ | 2,597,904 |
| | $ | 2,454,264 |
| Transportation | 1,251,474 |
| | 1,256,614 |
| Asphalt and fuels marketing | 1,717,960 |
| | 1,154,499 |
| Total segment assets | 5,567,338 |
| | 4,865,377 |
| Other partnership assets | 313,852 |
| | 521,016 |
| Total consolidated assets | $ | 5,881,190 |
| | $ | 5,386,393 |
|
Changes in the carrying amount of goodwill were as follows: | | | | | | | | | | | | | | | | | | Storage | | Transportation | | Asphalt and Fuels Marketing | | Total | | (Thousands of Dollars) | Balance as of January 1, 2010 | $ | 579,639 |
| | $ | 174,848 |
| | $ | 53,255 |
| | $ | 807,742 |
| Asphalt Holdings Acquisition preliminary purchase price allocation | 5,528 |
| | — |
| | — |
| | 5,528 |
| Balance as of December 31, 2010 | 585,167 |
| | 174,848 |
| | 53,255 |
| | 813,270 |
| Turkey Acquisition preliminary purchase price allocation | 33,734 |
| | — |
| | — |
| | 33,734 |
| Other (a) | (287 | ) | | — |
| | — |
| | (287 | ) | Balance as of December 31, 2011 | $ | 618,614 |
| | $ | 174,848 |
| | $ | 53,255 |
| | $ | 846,717 |
|
| | (a) | Includes purchase price adjustments related to acquisitions still subject to the measurement period that ends at the earlier of 12 months from the acquisition date or when information becomes available. Also includes foreign currency translation adjustments. |
Capital expenditures, including acquisitions and investments in other noncurrent assets, by reportable segment were as follows: | | | | | | | | | | | | | | Year Ended December 31, | | 2011 | | 2010 | | 2009 | | (Thousands of Dollars) | Storage | $ | 263,918 |
| | $ | 241,491 |
| | $ | 137,050 |
| Transportation | 45,170 |
| | 21,300 |
| | 27,551 |
| Asphalt and fuels marketing | 90,683 |
| | 26,387 |
| | 21,458 |
| Other partnership assets | 45,569 |
| | 27,147 |
| | 22,708 |
| Total capital expenditures | $ | 445,340 |
| | $ | 316,325 |
| | $ | 208,767 |
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