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Segment Reporting | 3 Months Ended
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Mar. 31, 2017
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting Segment information is prepared on the same basis that our Chief Operating Decision Maker (“CODM”) reviews financial information for operational decision-making purposes. We operate our business in two primary segments, wholesale and retail, both of which are included as reportable segments. No operating segments have been aggregated in identifying the two reportable segments. We allocate shared revenue and costs to each segment based on the way our CODM measures segment performance. Partnership overhead costs, interest and other expenses not directly attributable to a reportable segment are allocated based on segment gross profit. We report EBITDA and Adjusted EBITDA by segment as a measure of segment performance. We define EBITDA as net income before net interest expense, income tax expense and depreciation, amortization and accretion expense. We define Adjusted EBITDA to include adjustments for non-cash compensation expense, gains and losses on disposal of assets and impairment charges, unrealized gains and losses on commodity derivatives and inventory adjustments. Wholesale Segment Our wholesale segment purchases motor fuel primarily from independent refiners and major oil companies and supplies it to our retail segment, to independently-operated dealer stations under long-term supply agreements, and to distributors and other consumers of motor fuel. Also included in the wholesale segment are motor fuel sales to consignment locations and sales and costs related to processing transmix. We distribute motor fuels across more than 30 states throughout the East Coast and Southeast regions of the United States from Maine to Florida and from Florida to New Mexico, as well as Hawaii. Sales of fuel from our wholesale segment to our retail segment are delivered at cost plus a profit margin. These amounts are reflected in intercompany eliminations of motor fuel revenue and motor fuel cost of sales. Also included in our wholesale segment is rental income from properties that we lease or sublease. Retail Segment Our retail segment operates branded retail convenience stores across more than 20 states throughout the East Coast and Southeast regions of the United States with a significant presence in Texas, Pennsylvania, New York, Florida, and Hawaii. These stores offer motor fuel, merchandise, foodservice, and a variety of other services including car washes, lottery, automated teller machines, money orders, prepaid phone cards and wireless services. The following tables present financial information by segment for the three months ended March 31, 2017 and 2016:
| For the Three Months Ended March 31,
| 2017 |  | 2016
| Wholesale Segment |  | Retail Segment |  | Intercompany Eliminations |  | Totals |  | Wholesale Segment |  | Retail Segment |  | Intercompany Eliminations |  | Totals
| (in millions)
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail motor fuel | $ | — |  |  | $ | 1,516 |  |  |  |  | $ | 1,516 |  |  | $ | — |  |  | $ | 1,116 |  |  |  |  | $ | 1,116 |
Wholesale motor fuel sales to third parties | 2,243 |  |  | — |  |  |  |  | 2,243 |  |  | 1,496 |  |  | — |  |  |  |  | 1,496 |
Wholesale motor fuel sales to affiliates | 21 |  |  | — |  |  |  |  | 21 |  |  | 7 |  |  | — |  |  |  |  | 7 |
Merchandise | — |  |  | 540 |  |  |  |  | 540 |  |  | — |  |  | 524 |  |  |  |  | 524 |
Rental income | 19 |  |  | 4 |  |  |  |  | 23 |  |  | 19 |  |  | 3 |  |  |  |  | 22 |
Other | 13 |  |  | 38 |  |  |  |  | 51 |  |  | 18 |  |  | 32 |  |  |  |  | 50 |
Intersegment sales | 1,041 |  |  | 35 |  |  | (1,076 | ) |  | — |  |  | 754 |  |  | 31 |  |  | (785 | ) |  | — |
Total revenue | 3,337 |  |  | 2,133 |  |  | (1,076 | ) |  | 4,394 |  |  | 2,294 |  |  | 1,706 |  |  | (785 | ) |  | 3,215 |
Gross profit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail motor fuel | — |  |  | 137 |  |  |  |  | 137 |  |  | — |  |  | 132 |  |  |  |  | 132 |
Wholesale motor fuel | 126 |  |  | — |  |  |  |  | 126 |  |  | 151 |  |  | — |  |  |  |  | 151 |
Merchandise | — |  |  | 170 |  |  |  |  | 170 |  |  | — |  |  | 166 |  |  |  |  | 166 |
Rental and other | 28 |  |  | 42 |  |  |  |  | 70 |  |  | 36 |  |  | 26 |  |  |  |  | 62 |
Total gross profit | 154 |  |  | 349 |  |  |  |  | 503 |  |  | 187 |  |  | 324 |  |  |  |  | 511 |
Total operating expenses | 91 |  |  | 364 |  |  |  |  | 455 |  |  | 89 |  |  | 330 |  |  |  |  | 419 |
Income (loss) from operations | 63 |  |  | (15 | ) |  |  |  | 48 |  |  | 98 |  |  | (6 | ) |  |  |  | 92 |
Interest expense, net | 20 |  |  | 44 |  |  |  |  | 64 |  |  | 12 |  |  | 16 |  |  |  |  | 28 |
Income (loss) before income taxes | 43 |  |  | (59 | ) |  |  |  | (16 | ) |  | 86 |  |  | (22 | ) |  |  |  | 64 |
Income tax expense (benefit) | 1 |  |  | (18 | ) |  |  |  | (17 | ) |  | (1 | ) |  | 3 |  |  |  |  | 2 |
Net income (loss) and comprehensive income (loss) | $ | 42 |  |  | $ | (41 | ) |  |  |  | $ | 1 |  |  | $ | 87 |  |  | $ | (25 | ) |  |  |  | $ | 62 |
Depreciation, amortization and accretion | 22 |  |  | 65 |  |  |  |  | 87 |  |  | 17 |  |  | 61 |  |  |  |  | 78 |
Interest expense, net | 20 |  |  | 44 |  |  |  |  | 64 |  |  | 12 |  |  | 16 |  |  |  |  | 28 |
Income tax expense (benefit) | 1 |  |  | (18 | ) |  |  |  | (17 | ) |  | (1 | ) |  | 3 |  |  |  |  | 2 |
EBITDA | 85 |  |  | 50 |  |  |  |  | 135 |  |  | 115 |  |  | 55 |  |  |  |  | 170 |
Non-cash compensation expense | — |  |  | 4 |  |  |  |  | 4 |  |  | 2 |  |  | 1 |  |  |  |  | 3 |
Loss on disposal of assets | 2 |  |  | 5 |  |  |  |  | 7 |  |  | — |  |  | 1 |  |  |  |  | 1 |
Unrealized gain on commodity derivatives | (5 | ) |  | — |  |  |  |  | (5 | ) |  | (3 | ) |  | — |  |  |  |  | (3 | )
Inventory adjustments | 13 |  |  | 1 |  |  |  |  | 14 |  |  | (11 | ) |  | (1 | ) |  |  |  | (12 | )
Adjusted EBITDA | $ | 95 |  |  | $ | 60 |  |  |  |  | $ | 155 |  |  | $ | 103 |  |  | $ | 56 |  |  |  |  | $ | 159 |
Capital expenditures | $ | 12 |  |  | $ | 54 |  |  |  |  | $ | 66 |  |  | $ | 37 |  |  | $ | 59 |  |  |  |  | $ | 96 |
Total assets as of March 31, 2017 and December 31, 2016, respectively | $ | 2,934 |  |  | $ | 5,520 |  |  |  |  | $ | 8,454 |  |  | $ | 3,201 |  |  | $ | 5,500 |  |  |  |  | $ | 8,701 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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