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Segment Reporting
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting

Note 14. SEGMENT REPORTING

We conduct our business in two segments: 1) the Wholesale segment and 2) the Retail segment. The wholesale segment includes the wholesale distribution of motor fuel to lessee dealers, independent dealers, commission agents, DMS (through the closing of the acquisition of retail and wholesale assets) and company operated retail sites. We have exclusive motor fuel distribution contracts with lessee dealers who lease the property from us. We also have exclusive distribution contracts with independent dealers to distribute motor fuel but do not collect rent from the independent dealers. Similar to lessee dealers, we had motor fuel distribution and lease agreements with DMS (through the closing of the acquisition of retail and wholesale assets). The Retail segment includes the retail sale of motor fuel at retail sites operated by commission agents and the sale of convenience merchandise items and the retail sale of motor fuel at company operated sites. A commission agent is a retail site where we retain title to the motor fuel inventory and sell it directly to our end user customers. At commission agent retail sites, we manage motor fuel inventory pricing and retain the gross profit on motor fuel sales, less a commission to the agent who operates the retail site. Similar to our Wholesale segment, we also generate revenues through leasing or subleasing real estate in our Retail segment.

Unallocated items consist primarily of general and administrative expenses, depreciation, amortization and accretion expense, gains on dispositions and lease terminations, net, and the elimination of the Retail segment’s intersegment cost of revenues from motor fuel sales against the Wholesale segment’s intersegment revenues from motor fuel sales. The profit in ending inventory generated by the intersegment motor fuel sales is also eliminated. Total assets by segment are not presented as management does not currently assess performance or allocate resources based on that data.

The following table reflects activity related to our reportable segments (in thousands):

 

 

 

Wholesale

 

 

Retail

 

 

Unallocated

 

 

Consolidated

 

Three Months Ended March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

398,493

 

 

$

197,487

 

 

$

—

 

 

$

595,980

 

Intersegment revenues from fuel sales

 

 

144,452

 

 

 

—

 

 

 

(144,452

)

 

 

—

 

Revenues from food and merchandise sales

 

 

—

 

 

 

37,839

 

 

 

—

 

 

 

37,839

 

Rent income

 

 

17,700

 

 

 

2,772

 

 

 

—

 

 

 

20,472

 

Other revenue

 

 

1,134

 

 

 

1,859

 

 

 

—

 

 

 

2,993

 

Total revenues

 

$

561,779

 

 

$

239,957

 

 

$

(144,452

)

 

$

657,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

24,905

 

 

$

293

 

 

$

(26,062

)

 

$

(864

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

302,123

 

 

$

65,769

 

 

$

—

 

 

$

367,892

 

Intersegment revenues from fuel sales

 

 

47,906

 

 

 

—

 

 

 

(47,906

)

 

 

—

 

Rent income

 

 

20,468

 

 

 

2,220

 

 

 

—

 

 

 

22,688

 

Other revenue

 

 

1,115

 

 

 

—

 

 

 

—

 

 

 

1,115

 

Total revenues

 

$

371,612

 

 

$

67,989

 

 

$

(47,906

)

 

$

391,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from CST Fuel Supply equity interests

 

$

3,202

 

 

$

—

 

 

$

—

 

 

$

3,202

 

Operating income

 

$

29,265

 

 

$

395

 

 

$

47,772

 

 

$

77,432

 

 

From the date of conversion of the 46 company operated sites to dealer operated sites in the third quarter of 2019 through April 14, 2020, we did not have any company operated sites.

Receivables relating to the revenue streams above are as follows (in thousands):

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Receivables from fuel and merchandise sales

 

$

26,741

 

 

$

23,800

 

Receivables for rent and other lease-related charges

 

 

5,195

 

 

 

5,650

 

Total accounts receivable

 

$

31,936

 

 

$

29,450

 

Performance obligations are satisfied as fuel is delivered to the customer and as merchandise is sold to the consumer. Many of our fuel contracts with our customers include minimum purchase volumes measured on a monthly basis, although such revenue is not material. Receivables from fuel are recognized on a per-gallon rate and are generally collected within 10 days of delivery.

The balance of unamortized costs incurred to obtain certain contracts with customers was $8.7 million and $8.3 million at March 31, 2021 and December 31, 2020, respectively. Amortization of such costs is recorded against operating revenues and amounted to $0.3 million for the three months ended March 31, 2021 and 2020.

Receivables from rent and other lease-related charges are generally collected at the beginning of the month.