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Segment Reporting
 9 Months Ended
Sep. 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 September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

653,905

 

 

$

518,356

 

 

$

—

 

 

$

1,172,261

 

Intersegment revenues from fuel sales

 

 

398,072

 

 

 

—

 

 

 

(398,072

)

 

 

—

 

Revenues from food and merchandise sales

 

 

—

 

 

 

76,136

 

 

 

—

 

 

 

76,136

 

Rent income

 

 

18,134

 

 

 

3,126

 

 

 

—

 

 

 

21,260

 

Other revenue

 

 

1,657

 

 

 

3,093

 

 

 

—

 

 

 

4,750

 

Total revenues

 

$

1,071,768

 

 

$

600,711

 

 

$

(398,072

)

 

$

1,274,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

45,387

 

 

$

20,937

 

 

$

(26,685

)

 

$

39,639

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

565,022

 

 

$

337,214

 

 

$

—

 

 

$

902,236

 

Intersegment revenues from fuel sales

 

 

260,713

 

 

 

—

 

 

 

(260,713

)

 

 

—

 

Revenues from food and merchandise sales

 

 

—

 

 

 

58,283

 

 

 

—

 

 

 

58,283

 

Rent income

 

 

18,441

 

 

 

3,057

 

 

 

—

 

 

 

21,498

 

Other revenue

 

 

795

 

 

 

2,310

 

 

 

—

 

 

 

3,105

 

Total revenues

 

$

844,971

 

 

$

400,864

 

 

$

(260,713

)

 

$

985,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

39,496

 

 

$

2,007

 

 

$

(28,915

)

 

$

12,588

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

2,032,950

 

 

$

1,519,923

 

 

 

—

 

 

$

3,552,873

 

Intersegment revenues from fuel sales

 

 

1,235,496

 

 

 

—

 

 

 

(1,235,496

)

 

 

—

 

Revenues from food and merchandise sales

 

 

—

 

 

 

212,417

 

 

 

—

 

 

 

212,417

 

Rent income

 

 

53,450

 

 

 

9,286

 

 

 

—

 

 

 

62,736

 

Other revenue

 

 

5,250

 

 

 

9,375

 

 

 

—

 

 

 

14,625

 

Total revenues

 

$

3,327,146

 

 

$

1,751,001

 

 

$

(1,235,496

)

 

$

3,842,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

126,508

 

 

$

25,033

 

 

$

(81,111

)

 

$

70,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

1,493,614

 

 

$

794,826

 

 

$

—

 

 

$

2,288,440

 

Intersegment revenues from fuel sales

 

 

604,043

 

 

 

—

 

 

 

(604,043

)

 

 

—

 

Revenues from food and merchandise sales

 

 

—

 

 

 

141,330

 

 

 

—

 

 

 

141,330

 

Rent income

 

 

54,350

 

 

 

8,482

 

 

 

—

 

 

 

62,832

 

Other revenue

 

 

2,658

 

 

 

6,480

 

 

 

—

 

 

 

9,138

 

Total revenues

 

$

2,154,665

 

 

$

951,118

 

 

$

(604,043

)

 

$

2,501,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

97,645

 

 

$

3,253

 

 

$

(81,012

)

 

$

19,886

 

 

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

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Receivables from fuel and merchandise sales

 

$

33,086

 

 

$

27,932

 

Receivables for rent and other lease-related charges

 

 

1,338

 

 

 

6,548

 

Total accounts receivable

 

$

34,424

 

 

$

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 $11.1 million and $11.0 million at September 30, 2022 and December 31, 2021, respectively. Amortization of such costs is recorded against operating revenues and amounted to $0.5 million and $0.4 million for the three months ended September 30, 2022 and 2021 and $1.3 million and $1.1 million for the nine months ended September 30, 2022 and 2021, respectively.

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