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Segment Reporting | 3 Months Ended
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Mar. 31, 2018
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 commission agent 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 Prior to the completion of the Retail Divestment, our retail segment primarily operated 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 operations of the Retail Divestment are included in discontinued operations in the following segment information. Subsequent to the completion of the Retail Divestment, the remaining retail segment includes the Partnership's ethanol plant, credit card services, franchise royalties, and its retail operations in Hawaii and the continental United States. The following tables present financial information by segment for the three months ended March 31, 2018 and 2017:
| For the Three Months Ended March 31,
| 2018 |  | 2017
| Wholesale Segment |  | Retail Segment |  | Intercompany Eliminations |  | Totals |  | Wholesale Segment |  | Retail Segment |  | Intercompany Eliminations |  | Totals
| (in millions)
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail motor fuel | $ | — |  |  | $ | 445 |  |  |  |  | $ | 445 |  |  | $ | — |  |  | $ | 353 |  |  |  |  | $ | 353 |
Wholesale motor fuel sales to third parties | 3,094 |  |  | — |  |  |  |  | 3,094 |  |  | 2,244 |  |  | — |  |  |  |  | 2,244 |
Wholesale motor fuel sales to affiliates | 12 |  |  | — |  |  |  |  | 12 |  |  | 21 |  |  | — |  |  |  |  | 21 |
Merchandise | — |  |  | 135 |  |  |  |  | 135 |  |  | — |  |  | 131 |  |  |  |  | 131 |
Rental income | 19 |  |  | 3 |  |  |  |  | 22 |  |  | 19 |  |  | 3 |  |  |  |  | 22 |
Other | 14 |  |  | 27 |  |  |  |  | 41 |  |  | 13 |  |  | 24 |  |  |  |  | 37 |
Intersegment sales | 404 |  |  | 34 |  |  | (438 | ) |  | — |  |  | 327 |  |  | 35 |  |  | (362 | ) |  | — |
Total revenue | 3,543 |  |  | 644 |  |  | (438 | ) |  | 3,749 |  |  | 2,624 |  |  | 546 |  |  | (362 | ) |  | 2,808 |
Gross profit |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Retail motor fuel | — |  |  | 44 |  |  |  |  | 44 |  |  | — |  |  | 36 |  |  |  |  | 36 |
Wholesale motor fuel | 161 |  |  | — |  |  |  |  | 161 |  |  | 122 |  |  | — |  |  |  |  | 122 |
Merchandise | — |  |  | 42 |  |  |  |  | 42 |  |  | — |  |  | 43 |  |  |  |  | 43 |
Rental and other | 29 |  |  | 20 |  |  |  |  | 49 |  |  | 28 |  |  | 27 |  |  |  |  | 55 |
Total gross profit | 190 |  |  | 106 |  |  |  |  | 296 |  |  | 150 |  |  | 106 |  |  |  |  | 256 |
Total operating expenses | 119 |  |  | 81 |  |  |  |  | 200 |  |  | 91 |  |  | 109 |  |  |  |  | 200 |
Operating income (loss) | 71 |  |  | 25 |  |  |  |  | 96 |  |  | 59 |  |  | (3 | ) |  |  |  | 56 |
Interest expense, net | 19 |  |  | 15 |  |  |  |  | 34 |  |  | 20 |  |  | 38 |  |  |  |  | 58 |
Loss on extinguishment of debt and other | 109 |  |  | — |  |  |  |  | 109 |  |  | — |  |  | — |  |  |  |  | — |
Income (loss) from continuing operations before income taxes | (57 | ) |  | 10 |  |  |  |  | (47 | ) |  | 39 |  |  | (41 | ) |  |  |  | (2 | )
Income tax expense (benefit) | 1 |  |  | 30 |  |  |  |  | 31 |  |  | 1 |  |  | (15 | ) |  |  |  | (14 | )
Income (loss) from continuing operations | (58 | ) |  | (20 | ) |  |  |  | (78 | ) |  | 38 |  |  | (26 | ) |  |  |  | 12 |
Loss from discontinued operations, net of income taxes (See Note 4) | — |  |  | (237 | ) |  |  |  | (237 | ) |  | — |  |  | (11 | ) |  |  |  | (11 | )
Net income (loss) and comprehensive income (loss) | $ | (58 | ) |  | $ | (257 | ) |  |  |  | $ | (315 | ) |  | $ | 38 |  |  | $ | (37 | ) |  |  |  | $ | 1 |
Depreciation, amortization and accretion (1) | 28 |  |  | 21 |  |  |  |  | 49 |  |  | 22 |  |  | 65 |  |  |  |  | 87 |
Interest expense, net (1) | 19 |  |  | 17 |  |  |  |  | 36 |  |  | 20 |  |  | 44 |  |  |  |  | 64 |
Income tax expense (benefit) (1) | 1 |  |  | 203 |  |  |  |  | 204 |  |  | 1 |  |  | (18 | ) |  |  |  | (17 | )
EBITDA | (10 | ) |  | (16 | ) |  |  |  | (26 | ) |  | 81 |  |  | 54 |  |  |  |  | 135 |
Non-cash compensation expense (1) | — |  |  | 3 |  |  |  |  | 3 |  |  | — |  |  | 4 |  |  |  |  | 4 |
Loss on disposal of assets (1) | 3 |  |  | 23 |  |  |  |  | 26 |  |  | 2 |  |  | 5 |  |  |  |  | 7 |
Loss on extinguishment of debt and other (1) | 109 |  |  | 20 |  |  |  |  | 129 |  |  | — |  |  | — |  |  |  |  | — |
Unrealized gain on commodity derivatives (1) | — |  |  | — |  |  |  |  | — |  |  | (5 | ) |  | — |  |  |  |  | (5 | )
Inventory fair value adjustments (1) | (25 | ) |  | (1 | ) |  |  |  | (26 | ) |  | 13 |  |  | 1 |  |  |  |  | 14 |
Other non-cash adjustments | 3 |  |  | — |  |  |  |  | 3 |  |  | — |  |  | — |  |  |  |  | — |
Adjusted EBITDA | $ | 80 |  |  | $ | 29 |  |  |  |  | $ | 109 |  |  | $ | 91 |  |  | $ | 64 |  |  |  |  | $ | 155 |
Capital expenditures (1) | $ | 12 |  |  | $ | 7 |  |  |  |  | $ | 19 |  |  | $ | 12 |  |  | $ | 54 |  |  |  |  | $ | 66 |
Total assets as of March 31, 2018 and December 31, 2017, respectively | $ | 3,073 |  |  | $ | 1,846 |  |  |  |  | $ | 4,919 |  |  | $ | 3,130 |  |  | $ | 5,214 |  |  |  |  | $ | 8,344 |
________________________________
(1) | Includes amounts from discontinued operations.

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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