Segment Data | Segment Data We aggregate our operating segments into two reportable segments: (i) pipelines and transportation and (ii) wholesale marketing and terminalling: • The assets and investments reported in the pipeline and transportation segment provide crude oil gathering and crude oil, intermediate and refined products transportation and storage services to Delek Holdings' refining operations and independent third parties. • The wholesale marketing and terminalling segment provides marketing services for the refined products output of the Delek Holdings' refineries, engages in wholesale activity at our terminals and terminals owned by third parties, whereby we purchase light product for sale and exchange to third parties, and provides terminalling services at our refined products terminals to independent third parties and Delek Holdings. Our operating segments adhere to the accounting policies used for our consolidated financial statements. Our operating segments are managed separately because each segment requires different industry knowledge, technology and marketing strategies. Decisions concerning the allocation of resources and assessment of operating performance are made based on this segmentation. Management measures the operating performance of each of its reportable segments based on segment contribution margin. Segment contribution margin is defined as net revenues less cost of materials and other and operating expenses, excluding depreciation and amortization. The following is a summary of business segment operating performance as measured by contribution margin for the periods indicated: (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Pipelines and Transportation Net revenues: Affiliate $ 70,879 $ 68,444 $ 199,591 $ 168,285 Third party 5,323 3,035 12,021 14,587 Total pipelines and transportation 76,202 71,479 211,612 182,872 Cost of materials and other 15,170 14,342 42,595 31,622 Operating expenses (excluding depreciation and amortization) 13,680 10,749 34,710 31,936 Segment contribution margin $ 47,352 $ 46,388 $ 134,307 $ 119,314 Capital spending $ 2,570 $ 2,552 $ 9,946 $ 3,424 Wholesale Marketing and Terminalling Net revenues: Affiliate (1) $ 52,640 $ 26,966 $ 108,844 $ 121,454 Third party 60,785 43,823 190,562 118,980 Total wholesale marketing and terminalling 113,425 70,789 299,406 240,434 Cost of materials and other 89,959 46,350 232,400 174,255 Operating expenses (excluding depreciation and amortization) 3,665 3,481 12,232 9,487 Segment contribution margin $ 19,801 $ 20,958 $ 54,774 $ 56,692 Capital spending $ 1,566 $ 676 $ 4,580 $ 3,494 Consolidated Net revenues: Affiliate $ 123,519 $ 95,410 $ 308,435 $ 289,739 Third party 66,108 46,858 202,583 133,567 Total Consolidated 189,627 142,268 511,018 423,306 Cost of materials and other 105,129 60,692 274,995 205,877 Operating expenses (excluding depreciation and amortization presented below) 17,345 14,230 46,942 41,423 Contribution margin $ 67,153 $ 67,346 189,081 176,006 General and administrative expenses 6,141 6,122 17,018 16,973 Depreciation and amortization 10,156 9,459 30,862 24,452 Other operating expense (income), net 273 — 54 (107) Operating income $ 50,583 $ 51,765 $ 141,147 $ 134,688 Capital spending $ 4,136 $ 3,228 $ 14,526 $ 6,918 (1) Affiliate revenue for the wholesale marketing and terminalling segment is presented net of amortization expense related to a customer contract intangible asset. See Note 4 for additional information. The following table summarizes the total assets for each segment as of September 30, 2021 and December 31, 2020 (in thousands). Assets for each segment include property, plant and equipment, equity method investments, intangible assets and inventory. September 30, 2021 December 31, 2020 Pipelines and transportation $ 692,901 $ 723,317 Wholesale marketing and terminalling 213,277 206,918 Other 24,365 26,182 Total assets 930,543 $ 956,417 Property, plant and equipment and accumulated depreciation as of September 30, 2021 and depreciation expense by reporting segment for the three and nine months ended September 30, 2021 were as follows (in thousands): Pipelines and Transportation Wholesale Marketing and Terminalling Consolidated Property, plant and equipment $ 589,729 $ 115,176 $ 704,905 Less: accumulated depreciation (199,867) (56,829) (256,696) Property, plant and equipment, net $ 389,862 $ 58,347 $ 448,209 Depreciation expense for the three months ended September 30, 2021 $ 8,056 $ 2,100 $ 10,156 Depreciation expense for the nine months ended September 30, 2021 $ 24,918 $ 5,944 $ 30,862 In accordance with ASC 360, Property, Plant & Equipment |