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Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting

Note 22. SEGMENT REPORTING

We conduct our business in two reportable 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 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.

Our chief operating decision maker ("CODM") is comprised of our Senior Leadership Team. Our CODM uses segment operating income to assess performance and allocate resources to our segments. Goals and bonus compensation for certain personnel are tied in part to segment operating income. The Senior Leadership Team considers actual-to-budget variances on a monthly basis using segment operating income when making decisions about allocating capital and personnel to our segments.

 

During 2024, we converted 107 sites from lessee dealer sites in the wholesale segment to company operated or commission sites in the retail segment, net, including 59 sites from the Applegreen Acquisition. During 2023, we converted 44 sites from lessee dealer sites in the wholesale segment to company operated or commission sites in the retail segment, net. See Note 3 for additional information.

As of December 31, 2024, our wholesale and retail segments operate in 33 and 27 states, respectively.

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

 

 

Wholesale

 

 

Retail

 

 

Unallocated

 

 

Consolidated

 

Year Ended December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

1,809,897

 

 

$

1,802,995

 

 

$

—

 

 

$

3,612,892

 

Revenues from food and merchandise sales

 

 

—

 

 

 

390,144

 

 

 

—

 

 

 

390,144

 

Rent income

 

 

57,765

 

 

 

13,419

 

 

 

—

 

 

 

71,184

 

Other revenue

 

 

4,601

 

 

 

19,467

 

 

 

—

 

 

 

24,068

 

Total revenues

 

 

1,872,263

 

 

 

2,226,025

 

 

 

—

 

 

 

4,098,288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

1,747,005

 

 

 

1,652,079

 

 

 

—

 

 

 

3,399,084

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

280,234

 

 

 

—

 

 

 

280,234

 

Cost of goods sold - Rent expense

 

 

16,643

 

 

 

4,008

 

 

 

—

 

 

 

20,651

 

Gross profit

 

 

108,615

 

 

 

289,704

 

 

 

—

 

 

 

398,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

88,500

 

 

 

—

 

 

 

88,500

 

Maintenance and environmental costs

 

 

7,333

 

 

 

29,006

 

 

 

—

 

 

 

36,339

 

Other items (a)

 

 

24,421

 

 

 

78,726

 

 

 

99,773

 

 

 

202,920

 

Operating income (loss)

 

$

76,861

 

 

$

93,472

 

 

$

(99,773

)

 

$

70,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

2,215,110

 

 

$

1,751,846

 

 

$

—

 

 

$

3,966,956

 

Revenues from food and merchandise sales

 

 

—

 

 

 

315,957

 

 

 

—

 

 

 

315,957

 

Rent income

 

 

69,693

 

 

 

12,638

 

 

 

—

 

 

 

82,331

 

Other revenue

 

 

5,248

 

 

 

15,771

 

 

 

—

 

 

 

21,019

 

Total revenues

 

 

2,290,051

 

 

 

2,096,212

 

 

 

—

 

 

 

4,386,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

2,142,430

 

 

 

1,613,117

 

 

 

—

 

 

 

3,755,547

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

226,110

 

 

 

—

 

 

 

226,110

 

Cost of goods sold - Rent expense

 

 

18,820

 

 

 

3,518

 

 

 

—

 

 

 

22,338

 

Gross profit

 

 

128,801

 

 

 

253,467

 

 

 

—

 

 

 

382,268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

71,101

 

 

 

—

 

 

 

71,101

 

Maintenance and environmental costs

 

 

9,459

 

 

 

20,976

 

 

 

—

 

 

 

30,435

 

Other items (a)

 

 

28,529

 

 

 

64,681

 

 

 

99,452

 

 

 

192,662

 

Operating income (loss)

 

$

90,813

 

 

$

96,709

 

 

$

(99,452

)

 

$

88,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from fuel sales to external customers

 

$

2,612,258

 

 

$

1,971,806

 

 

$

—

 

 

$

4,584,064

 

Revenues from food and merchandise sales

 

 

—

 

 

 

280,191

 

 

 

—

 

 

 

280,191

 

Rent income

 

 

71,322

 

 

 

12,784

 

 

 

—

 

 

 

84,106

 

Other revenue

 

 

6,509

 

 

 

12,554

 

 

 

—

 

 

 

19,063

 

Total revenues

 

 

2,690,089

 

 

 

2,277,335

 

 

 

—

 

 

 

4,967,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold - fuel

 

 

2,538,880

 

 

 

1,825,260

 

 

 

—

 

 

 

4,364,140

 

Cost of goods sold - food and merchandise

 

 

—

 

 

 

204,056

 

 

 

—

 

 

 

204,056

 

Cost of goods sold - Rent expense

 

 

20,470

 

 

 

2,987

 

 

 

—

 

 

 

23,457

 

Gross profit

 

 

130,739

 

 

 

245,032

 

 

 

—

 

 

 

375,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Store labor

 

 

—

 

 

 

59,236

 

 

 

—

 

 

 

59,236

 

Maintenance and environmental costs

 

 

9,502

 

 

 

18,173

 

 

 

—

 

 

 

27,675

 

Other items (a)

 

 

27,570

 

 

 

60,227

 

 

 

105,057

 

 

 

192,854

 

Operating income (loss)

 

$

93,667

 

 

$

107,396

 

 

$

(105,057

)

 

$

96,006

 

 

(a) For the Wholesale and Retail segments, other segment items includes real estate taxes, utilities, management fees, insurance and other operating expenses. For the Retail segment, other segment items also includes rent expense, store supplies and shrink. Other segment items that are not allocated to a segment include general and administrative expenses, depreciation, amortization and accretion expense and gains on dispositions and lease terminations, net.

A reconciliation from operating income to income before income taxes follows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Operating income

 

$

70,560

 

 

$

88,070

 

 

$

96,006

 

Other income, net

 

 

780

 

 

 

790

 

 

 

504

 

Interest expense

 

 

(52,320

)

 

 

(43,743

)

 

 

(32,100

)

Income before income taxes

 

$

19,020

 

 

$

45,117

 

 

$

64,410

 

 

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

 

 

December 31,

 

 

 

2024

 

 

2023

 

Receivables from fuel and merchandise sales

 

$

30,115

 

 

$

28,467

 

Receivables for rent and other lease-related charges

 

 

2,122

 

 

 

3,155

 

Total accounts receivable

 

$

32,237

 

 

$

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 $8.9 million and $10.0 million at December 31, 2024 and 2023, respectively. Amortization of such costs is recorded against operating revenues and amounted to $2.0 million, $1.9 million and $1.7 million for 2024, 2023 and 2022, respectively

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