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Segment Reporting
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting

Note 16. 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 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. 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 site 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 June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

795,924

 

 

$

579,325

 

 

$

—

 

 

$

1,375,249

 

Intersegment revenues from fuel sales

 

 

493,423

 

 

 

—

 

 

 

(493,423

)

 

 

—

 

Revenues from food and merchandise sales

 

 

—

 

 

 

73,934

 

 

 

—

 

 

 

73,934

 

Rent income

 

 

17,839

 

 

 

3,010

 

 

 

—

 

 

 

20,849

 

Other revenue

 

 

1,807

 

 

 

3,194

 

 

 

—

 

 

 

5,001

 

Total revenues

 

$

1,308,993

 

 

$

659,463

 

 

$

(493,423

)

 

$

1,475,033

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

44,264

 

 

$

3,420

 

 

$

(26,612

)

 

$

21,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

530,099

 

 

$

260,125

 

 

$

—

 

 

$

790,224

 

Intersegment revenues from fuel sales

 

 

198,878

 

 

 

—

 

 

 

(198,878

)

 

 

—

 

Revenues from food and merchandise sales

 

 

—

 

 

 

45,208

 

 

 

—

 

 

 

45,208

 

Rent income

 

 

18,209

 

 

 

2,653

 

 

 

—

 

 

 

20,862

 

Other revenue

 

 

729

 

 

 

2,311

 

 

 

—

 

 

 

3,040

 

Total revenues

 

$

747,915

 

 

$

310,297

 

 

$

(198,878

)

 

$

859,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

33,244

 

 

$

953

 

 

$

(26,035

)

 

$

8,162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

1,379,045

 

 

$

1,001,567

 

 

$

—

 

 

$

2,380,612

 

Intersegment revenues from fuel sales

 

 

837,424

 

 

 

—

 

 

 

(837,424

)

 

 

—

 

Revenues from food and merchandise sales

 

 

—

 

 

 

136,281

 

 

 

—

 

 

 

136,281

 

Rent income

 

 

35,316

 

 

 

6,160

 

 

 

—

 

 

 

41,476

 

Other revenue

 

 

3,593

 

 

 

6,282

 

 

 

—

 

 

 

9,875

 

Total revenues

 

$

2,255,378

 

 

$

1,150,290

 

 

$

(837,424

)

 

$

2,568,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

81,121

 

 

$

4,096

 

 

$

(54,426

)

 

$

30,791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

928,592

 

 

$

457,612

 

 

$

—

 

 

$

1,386,204

 

Intersegment revenues from fuel sales

 

 

343,330

 

 

 

—

 

 

 

(343,330

)

 

 

—

 

Revenues from food and merchandise sales

 

 

—

 

 

 

83,047

 

 

 

—

 

 

 

83,047

 

Rent income

 

 

35,909

 

 

 

5,425

 

 

 

—

 

 

 

41,334

 

Other revenue

 

 

1,863

 

 

 

4,170

 

 

 

—

 

 

 

6,033

 

Total revenues

 

$

1,309,694

 

 

$

550,254

 

 

$

(343,330

)

 

$

1,516,618

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

58,149

 

 

$

1,246

 

 

$

(52,097

)

 

$

7,298

 

 

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

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Receivables from fuel and merchandise sales

 

$

46,277

 

 

$

27,932

 

Receivables for rent and other lease-related charges

 

 

3,373

 

 

 

6,548

 

Total accounts receivable

 

$

49,650

 

 

$

34,480

 

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 $11.2 million and $11.0 million at June 30, 2022 and December 31, 2021, respectively. Amortization of such costs is recorded against operating revenues and amounted to $0.4 million for the three months ended June 30, 2022 and 2021 and $0.9 million and $0.7 million for the six months ended June 30, 2022 and 2021, respectively.

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