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Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting

Note 15. 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 and independent dealers. 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, other income, interest expense and income tax expense. Total assets by segment are not presented as management does not currently assess performance or allocate resources based on that data.

During the three and nine months ended September 30, 2024, respectively, we converted 11 and 106 sites from lessee dealer sites in the wholesale segment to company operated or commission sites in the retail segment, net. The sites converted during the first nine months of 2024 include 59 sites from the Applegreen Acquisition. See Note 2 for additional information. During the three and nine months ended September 30, 2023, respectively, we converted one and 34 sites from lessee dealer sites in the wholesale segment to company operated or commission sites in the retail segment.

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

 

 

 

Wholesale

 

 

Retail

 

 

Unallocated

 

 

Consolidated

 

Three Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

456,447

 

 

$

490,162

 

 

$

—

 

 

$

946,609

 

Revenues from food and merchandise sales

 

 

—

 

 

 

109,441

 

 

 

—

 

 

 

109,441

 

Rent income

 

 

13,477

 

 

 

3,461

 

 

 

—

 

 

 

16,938

 

Other revenue

 

 

1,244

 

 

 

4,931

 

 

 

—

 

 

 

6,175

 

Total revenues

 

$

471,168

 

 

$

607,995

 

 

$

—

 

 

$

1,079,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

19,097

 

 

$

31,363

 

 

$

(23,364

)

 

$

27,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

616,470

 

 

$

479,192

 

 

$

—

 

 

$

1,095,662

 

Revenues from food and merchandise sales

 

 

—

 

 

 

88,681

 

 

 

—

 

 

 

88,681

 

Rent income

 

 

17,221

 

 

 

2,916

 

 

 

—

 

 

 

20,137

 

Other revenue

 

 

1,642

 

 

 

3,901

 

 

 

—

 

 

 

5,543

 

Total revenues

 

$

635,333

 

 

$

574,690

 

 

$

—

 

 

$

1,210,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

23,381

 

 

$

26,450

 

 

$

(25,686

)

 

$

24,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

1,416,361

 

 

$

1,374,464

 

 

$

—

 

 

$

2,790,825

 

Revenues from food and merchandise sales

 

 

—

 

 

 

291,266

 

 

 

—

 

 

 

291,266

 

Rent income

 

 

44,123

 

 

 

9,836

 

 

 

—

 

 

 

53,959

 

Other revenue

 

 

3,238

 

 

 

14,778

 

 

 

—

 

 

 

18,016

 

Total revenues

 

$

1,463,722

 

 

$

1,690,344

 

 

$

—

 

 

$

3,154,066

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

58,086

 

 

$

70,631

 

 

$

(86,489

)

 

$

42,228

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

1,719,330

 

 

$

1,337,453

 

 

$

—

 

 

$

3,056,783

 

Revenues from food and merchandise sales

 

 

—

 

 

 

237,613

 

 

 

—

 

 

 

237,613

 

Rent income

 

 

52,556

 

 

 

9,424

 

 

 

—

 

 

 

61,980

 

Other revenue

 

 

4,053

 

 

 

11,149

 

 

 

—

 

 

 

15,202

 

Total revenues

 

$

1,775,939

 

 

$

1,595,639

 

 

$

—

 

 

$

3,371,578

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

66,825

 

 

$

67,368

 

 

$

(73,085

)

 

$

61,108

 

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

 

 

September 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Receivables from fuel and merchandise sales

 

$

29,996

 

 

$

28,467

 

Receivables for rent and other lease-related charges

 

 

2,524

 

 

 

3,155

 

Total accounts receivable

 

$

32,520

 

 

$

31,622

 

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, for which our performance obligations are satisfied as services are rendered. 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 $8.6 million and $10.0 million at September 30, 2024 and December 31, 2023, respectively. Amortization of such costs is recorded against operating revenues and amounted to $0.5 million for each of the three months ended September 30, 2024 and 2023 and $1.4 million for each of the nine months ended September 30, 2024 and 2023.

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