Summary of Financial Information for Partnership's Reportable Segments | Summarized financial information for the Partnership’s reportable segments is presented in the table below: | | | | | | | | | | | | | | Years Ended December 31, | | 2016 | | 2015 | | 2014 | Net sales: | | | | | | Refined products | $ | 1,988,597 |
| | $ | 3,063,858 |
| | $ | 4,650,871 |
| Natural gas | 334,003 |
| | 347,453 |
| | 359,984 |
| Materials handling | 45,734 |
| | 45,570 |
| | 37,776 |
| Other operations | 21,664 |
| | 25,033 |
| | 21,131 |
| Net sales | $ | 2,389,998 |
| | $ | 3,481,914 |
| | $ | 5,069,762 |
| Adjusted gross margin (1): | | | | | | Refined products | $ | 142,581 |
| | $ | 170,448 |
| | $ | 146,021 |
| Natural gas | 62,435 |
| | 51,004 |
| | 55,536 |
| Materials handling | 45,712 |
| | 45,564 |
| | 37,811 |
| Other operations | 8,545 |
| | 8,986 |
| | 5,599 |
| Adjusted gross margin | 259,273 |
| | 276,002 |
| | 244,967 |
| Reconciliation to operating income (2): | | | | | | Add: unrealized (loss) gain on inventory derivatives (3) | (31,304 | ) | | (2,079 | ) | | 11,070 |
| Add: unrealized gain (loss) on prepaid forward contract derivatives (4) | 1,552 |
| | (2,628 | ) | | — |
| Add: unrealized (loss) gain on natural gas transportation contracts (5) | (18,612 | ) | | 21,695 |
| | 58,694 |
| Operating costs and expenses not allocated to operating segments: | | | | | | Operating expenses | (65,882 | ) | | (71,468 | ) | | (62,993 | ) | Selling, general and administrative | (84,257 | ) | | (94,403 | ) | | (76,420 | ) | Depreciation and amortization | (21,237 | ) | | (20,342 | ) | | (17,625 | ) | Operating income | 39,533 |
| | 106,777 |
| | 157,693 |
| Other (expense) income | (114 | ) | | 298 |
| | (288 | ) | Interest income | 388 |
| | 456 |
| | 569 |
| Interest expense | (27,533 | ) | | (27,367 | ) | | (29,651 | ) | Income tax provision | (2,108 | ) | | (1,816 | ) | | (5,509 | ) | Net income | $ | 10,166 |
| | $ | 78,348 |
| | $ | 122,814 |
|
| | (1) | The Partnership trades, purchases, stores and sells energy commodities that experience market value fluctuations. To manage the Partnership’s underlying performance, including its physical and derivative positions, management utilizes adjusted gross margin, which is a non-GAAP financial measure. Adjusted gross margin is also used by external users of the Partnership’s consolidated financial statements to assess the Partnership’s economic results of operations and its commodity market value reporting to lenders. In determining adjusted gross margin, the Partnership adjusts its segment results for the impact of unrealized hedging gains and losses with regard to refined products and natural gas inventory, prepaid forward contracts and natural gas transportation contracts, which are not marked to market for the purpose of recording unrealized gains or losses in net income. These adjustments align the unrealized hedging gains and losses to the period in which the revenue from the sale of inventory, prepaid fixed forwards and the utilization of transportation contracts relating to those hedges is realized in net income. Adjusted gross margin has no impact on reported volumes or net sales. |
| | (2) | Reconciliation of adjusted gross margin to operating income, the most directly comparable GAAP measure. |
| | (3) | Inventory is valued at the lower of cost or market. The fair value of the derivatives the Company uses to economically hedge its inventory declines or appreciates in value as the value of the underlying inventory appreciates or declines, which creates unrealized hedging (losses) gains with respect to the derivatives that are included in net income. |
| | (4) | The unrealized hedging gain (loss) on prepaid forward contract derivatives represents the Partnership’s estimate of the change in fair value of the prepaid forward contracts which are not recorded in net income until the forward contract is settled in the future (i.e., when the commodity is delivered to the customer). As these contracts are prepaid, they do not qualify as derivatives and changes in the fair value are therefore not included in net income. The fair value of the derivatives the Partnership uses to economically hedge its prepaid forward contracts declines or appreciates in value as the value of the underlying prepaid forward contract appreciates or declines, which creates unrealized hedging gains (losses) that are included in net income. |
| | (5) | The unrealized hedging (loss) gain on natural gas transportation contracts represents the Partnership’s estimate of the change in fair value of the natural gas transportation contracts which are not recorded in net income until the transportation is utilized in the future (i.e., when natural gas is delivered to the customer), as these contracts do not qualify as derivatives. As the fair value of the natural gas transportation contracts decline or appreciate, the offsetting physical or financial derivative will also appreciate or decline creating unmatched unrealized hedging (losses) gains in net income as of each period end. |
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Summary of Changes in Carrying Amount of Goodwill by Segment | Changes in the carrying amount of goodwill by segment were as follows: | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2014 | | Activity | | As of December 31, 2015 | | Activity (1) | | As of December 31, 2016 | Refined products | $ | 36,550 |
| | $ | — |
| | $ | 36,550 |
| | $ | — |
| | $ | 36,550 |
| Natural gas | 18,626 |
| | — |
| | 18,626 |
| | 7,262 |
| | 25,888 |
| Materials handling | 6,896 |
| | — |
| | 6,896 |
| | — |
| | 6,896 |
| Other | 1,216 |
| | — |
| | 1,216 |
| | — |
| | 1,216 |
| Total | $ | 63,288 |
| | $ | — |
| | $ | 63,288 |
| | $ | 7,262 |
| | $ | 70,550 |
|
| | (1) | Reflects goodwill attributable to the Santa Buckley Energy, Inc.'s natural gas business acquisition. |
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Summary of Long-Lived Assets (Exclusive of Intangible and Other Assets, Net and Goodwill) Classified by Geographic Location | Long-lived assets (exclusive of intangible and other assets, net, and goodwill) classified by geographic location were as follows: | | | | | | | | | | As of December 31, | | 2016 | | 2015 | United States | $ | 170,841 |
| | $ | 168,144 |
| Canada | 80,260 |
| | 82,765 |
| Total | $ | 251,101 |
| | $ | 250,909 |
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