| Segment Reporting |
Note 13. Segment Reporting Summarized financial information for the Partnership’s reportable segments is presented in the table below (in thousands): | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | | | 2025 | | 2024 | | 2025 | | 2024 | | Wholesale Segment: | | | | | | | | | | | | | | Sales | | | | | | | | | | | | | | Gasoline and gasoline blendstocks | | $ | 2,139,272 | | $ | 1,745,666 | | $ | 3,860,692 | | $ | 3,119,258 | | Distillates and other oils (1) | | | 993,228 | | | 917,022 | | | 2,462,244 | | | 2,182,778 | | Total | | $ | 3,132,500 | | $ | 2,662,688 | | $ | 6,322,936 | | $ | 5,302,036 | | Product margin | | | | | | | | | | | | | | Gasoline and gasoline blendstocks | | $ | 58,794 | | $ | 70,412 | | $ | 115,963 | | $ | 100,173 | | Distillates and other oils (1) | | | 32,938 | | | 21,453 | | | 69,409 | | | 41,112 | | Total | | $ | 91,732 | | $ | 91,865 | | $ | 185,372 | | $ | 141,285 | | Gasoline Distribution and Station Operations Segment: | | | | | | | | | | | | | | Sales | | | | | | | | | | | | | | Gasoline | | $ | 1,077,203 | | $ | 1,316,548 | | $ | 2,082,558 | | $ | 2,413,825 | | Station operations (2) | | | 141,371 | | | 149,525 | | | 262,725 | | | 279,693 | | Total | | $ | 1,218,574 | | $ | 1,466,073 | | $ | 2,345,283 | | $ | 2,693,518 | | Product margin | | | | | | | | | | | | | | Gasoline | | $ | 137,916 | | $ | 147,313 | | $ | 263,667 | | $ | 268,943 | | Station operations (2) | | | 69,972 | | | 74,154 | | | 132,084 | | | 140,241 | | Total | | $ | 207,888 | | $ | 221,467 | | $ | 395,751 | | $ | 409,184 | | Commercial Segment: | | | | | | | | | | | | | | Sales | | $ | 275,851 | | $ | 280,937 | | $ | 550,903 | | $ | 559,536 | | Product margin | | $ | 6,105 | | $ | 6,222 | | $ | 13,250 | | $ | 13,190 | | Combined sales and Product margin: | | | | | | | | | | | | | | Sales | | $ | 4,626,925 | | $ | 4,409,698 | | $ | 9,219,122 | | $ | 8,555,090 | | Product margin (3) | | $ | 305,725 | | $ | 319,554 | | $ | 594,373 | | $ | 563,659 | | Depreciation allocated to cost of sales | | | (33,363) | | | (31,670) | | | (66,770) | | | (60,640) | | Combined gross profit | | $ | 272,362 | | $ | 287,884 | | $ | 527,603 | | $ | 503,019 | |
| (1) | Distillates and other oils (primarily residual oil and crude oil). |
| (2) | Station operations consist of convenience store and prepared food sales, rental income and sundries. |
| (3) | Product margin is a non-GAAP financial measure used by management and external users of the Partnership’s consolidated financial statements to assess its business. The table above includes a reconciliation of product margin on a combined basis to gross profit, a directly comparable GAAP measure. |
Approximately 119 million gallons and 121 million gallons of the GDSO segment’s sales for the three months ended June 30, 2025 and 2024, respectively, and 226 million gallons and 220 million gallons of the GDSO segment’s sales for the six months ended June 30, 2025 and 2024, respectively, were supplied from petroleum products and renewable fuels sourced by the Wholesale segment. The Commercial segment’s sales were predominantly sourced by the Wholesale segment. These intra-segment sales are not reflected as sales in the Wholesale segment as they are eliminated. The following tables provide the Partnership’s significant segment operating expenses for each reportable segment, as well as a reconciliation of the totals reported for the reportable segments to the applicable line items in the accompanying consolidated financial statements for the periods presented (in thousands): | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | | Wholesale | | GDSO | | Commercial | | Consolidated | | Sales | | $ | 3,132,500 | | $ | 1,218,574 | | $ | 275,851 | | $ | 4,626,925 | | Cost of products | | | 3,040,768 | | | 1,010,686 | | | 269,746 | | | 4,321,200 | | Product margin | | | 91,732 | | | 207,888 | | | 6,105 | | | 305,725 | | Operating expenses allocated to operating segments: | | | | | | | | | | | | | | Wages and benefits (1) | | | 10,985 | | | 29,463 | | | — | | | 40,448 | | Occupancy costs (2) | | | 5,385 | | | 27,126 | | | — | | | 32,511 | | Transactional operating costs (3) | | | — | | | 22,636 | | | — | | | 22,636 | | Maintenance (4) | | | 19,083 | | | 11,586 | | | — | | | 30,669 | | Other segment operating expenses | | | 4,517 | | | 4,882 | | | — | | | 9,399 | | Total operating expenses allocated to operating segments | | $ | 39,970 | | $ | 95,693 | | $ | — | | | 135,663 | | Operating expenses not allocated to operating segments: | | | | | | | | | | | | | | Depreciation allocated to cost of sales | | | | | | | | | | | | 33,363 | | Selling, general and administrative expenses | | | | | | | | | | | | 74,775 | | Amortization expense | | | | | | | | | | | | 1,376 | | Net loss on sale and disposition of assets | | | | | | | | | | | | 271 | | Long-lived asset impairment | | | | | | | | | | | | 211 | | Total operating expenses not allocated to operating expenses | | | | | | | | | | | | 109,996 | | Operating income | | | | | | | | | | | | 60,066 | | Income from equity method investments | | | | | | | | | | | | 2,350 | | Interest expense | | | | | | | | | | | | (34,523) | | Loss on early extinguishment of debt | | | | | | | | | | | | (2,795) | | Income tax benefit | | | | | | | | | | | | 112 | | Net income | | | | | | | | | | | $ | 25,210 | |
| (1) | Includes salary and wages, payroll taxes, fringe benefits and other employee expenses |
| (2) | Includes rent and leases expenses, property taxes and utilities |
| (3) | Includes commissions and credit card fees |
| (4) | Includes maintenance and repairs, environmental and seasonal site maintenance expenses |
| | | | | | | | | | | | | | | | Three Months Ended June 30, 2024 | | | | Wholesale | | GDSO | | Commercial | | Consolidated | | Sales | | $ | 2,662,688 | | $ | 1,466,073 | | $ | 280,937 | | $ | 4,409,698 | | Cost of products | | | 2,570,823 | | | 1,244,606 | | | 274,715 | | | 4,090,144 | | Product margin | | | 91,865 | | | 221,467 | | | 6,222 | | | 319,554 | | Operating expenses allocated to operating segments: | | | | | | | | | | | | | | Wages and benefits (1) | | | 11,397 | | | 30,225 | | | — | | | 41,622 | | Occupancy costs (2) | | | 5,556 | | | 26,259 | | | — | | | 31,815 | | Transactional operating costs (3) | | | — | | | 24,285 | | | — | | | 24,285 | | Maintenance (4) | | | 12,373 | | | 10,132 | | | — | | | 22,505 | | Other segment operating expenses | | | 4,247 | | | 5,485 | | | — | | | 9,732 | | Total operating expenses allocated to operating segments | | $ | 33,573 | | $ | 96,386 | | $ | — | | | 129,959 | | Operating expenses not allocated to operating segments: | | | | | | | | | | | | | | Depreciation allocated to cost of sales | | | | | | | | | | | | 31,670 | | Selling, general and administrative expenses | | | | | | | | | | | | 72,370 | | Amortization expense | | | | | | | | | | | | 1,989 | | Net gain on sale and disposition of assets | | | | | | | | | | | | (303) | | Total operating expenses not allocated to operating expenses | | | | | | | | | | | | 105,726 | | Operating income | | | | | | | | | | | | 83,869 | | Loss from equity method investments | | | | | | | | | | | | (346) | | Interest expense | | | | | | | | | | | | (35,531) | | Income tax expense | | | | | | | | | | | | (1,843) | | Net income | | | | | | | | | | | $ | 46,149 | |
| (1) | Includes salary and wages, payroll taxes, fringe benefits and other employee expenses |
| (2) | Includes rent and leases expenses, property taxes and utilities |
| (3) | Includes commissions and credit card fees |
| (4) | Includes maintenance and repairs, environmental and seasonal site maintenance expenses |
| | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | | Wholesale | | GDSO | | Commercial | | Consolidated | | Sales | | $ | 6,322,936 | | $ | 2,345,283 | | $ | 550,903 | | $ | 9,219,122 | | Cost of products | | | 6,137,564 | | | 1,949,532 | | | 537,653 | | | 8,624,749 | | Product margin | | | 185,372 | | | 395,751 | | | 13,250 | | | 594,373 | | Operating expenses allocated to operating segments: | | | | | | | | | | | | | | Wages and benefits (1) | | | 22,863 | | | 58,873 | | | — | | | 81,736 | | Occupancy costs (2) | | | 11,308 | | | 53,500 | | | — | | | 64,808 | | Transactional operating costs (3) | | | — | | | 43,348 | | | — | | | 43,348 | | Maintenance (4) | | | 30,731 | | | 23,040 | | | — | | | 53,771 | | Other segment operating expenses | | | 8,703 | | | 10,012 | | | — | | | 18,715 | | Total operating expenses allocated to operating segments | | $ | 73,605 | | $ | 188,773 | | $ | — | | | 262,378 | | Operating expenses not allocated to operating segments: | | | | | | | | | | | | | | Depreciation allocated to cost of sales | | | | | | | | | | | | 66,770 | | Selling, general and administrative expenses | | | | | | | | | | | | 148,492 | | Amortization expense | | | | | | | | | | | | 2,788 | | Net gain on sale and disposition of assets | | | | | | | | | | | | (2,219) | | Long-lived asset impairment | | | | | | | | | | | | 211 | | Total operating expenses not allocated to operating expenses | | | | | | | | | | | | 216,042 | | Operating income | | | | | | | | | | | | 115,953 | | Income from equity method investments | | | | | | | | | | | | 2,416 | | Interest expense | | | | | | | | | | | | (70,562) | | Loss on early extinguishment of debt | | | | | | | | | | | | (2,795) | | Income tax expense | | | | | | | | | | | | (1,118) | | Net income | | | | | | | | | | | $ | 43,894 | |
| (1) | Includes salary and wages, payroll taxes, fringe benefits and other employee expenses |
| (2) | Includes rent and leases expenses, property taxes and utilities |
| (3) | Includes commissions and credit card fees |
| (4) | Includes maintenance and repairs, environmental and seasonal site maintenance expenses |
| | | | | | | | | | | | | | | | Six Months Ended June 30, 2024 | | | | Wholesale | | GDSO | | Commercial | | Consolidated | | Sales | | $ | 5,302,036 | | $ | 2,693,518 | | $ | 559,536 | | $ | 8,555,090 | | Cost of products | | | 5,160,751 | | | 2,284,334 | | | 546,346 | | | 7,991,431 | | Product margin | | | 141,285 | | | 409,184 | | | 13,190 | | | 563,659 | | Operating expenses allocated to operating segments: | | | | | | | | | | | | | | Wages and benefits (1) | | | 21,916 | | | 61,578 | | | — | | | 83,494 | | Occupancy costs (2) | | | 11,125 | | | 51,828 | | | — | | | 62,953 | | Transactional operating costs (3) | | | — | | | 45,231 | | | — | | | 45,231 | | Maintenance (4) | | | 18,814 | | | 21,709 | | | — | | | 40,523 | | Other segment operating expenses | | | 7,571 | | | 10,337 | | | — | | | 17,908 | | Total operating expenses allocated to operating segments | | $ | 59,426 | | $ | 190,683 | | $ | — | | | 250,109 | | Operating expenses not allocated to operating segments: | | | | | | | | | | | | | | Depreciation allocated to cost of sales | | | | | | | | | | | | 60,640 | | Selling, general and administrative expenses | | | | | | | | | | | | 142,151 | | Amortization expense | | | | | | | | | | | | 3,858 | | Net gain on sale and disposition of assets | | | | | | | | | | | | (2,804) | | Total operating expenses not allocated to operating expenses | | | | | | | | | | | | 203,845 | | Operating income | | | | | | | | | | | | 109,705 | | Loss from equity method investments | | | | | | | | | | | | (1,725) | | Interest expense | | | | | | | | | | | | (65,227) | | Income tax expense | | | | | | | | | | | | (2,206) | | Net income | | | | | | | | | | | $ | 40,547 | |
| (1) | Includes salary and wages, payroll taxes, fringe benefits and other employee expenses |
| (2) | Includes rent and leases expenses, property taxes and utilities |
| (3) | Includes commissions and credit card fees |
| (4) | Includes maintenance and repairs, environmental and seasonal site maintenance expenses |
The Partnership’s foreign assets and foreign sales were immaterial as of and for the three and six months ended June 30, 2025 and 2024. Segment Assets The Partnership’s terminal assets are allocated to the Wholesale segment, and its retail gasoline stations are allocated to the GDSO segment. Due to the commingled nature and uses of the remainder of the Partnership’s assets, it is not reasonably possible for the Partnership to allocate these assets among its reportable segments. The table below presents total assets by reportable segment at June 30, 2025 and December 31, 2024 (in thousands): | | | | | | | | | | | | | | | | | | | Wholesale | | | GDSO | | | Commercial | | | Unallocated (1) | | | Total | June 30, 2025 | | $ | 1,217,271 | | $ | 1,846,021 | | $ | — | | $ | 721,046 | | $ | 3,784,338 | December 31, 2024 | | $ | 1,333,102 | | $ | 1,859,417 | | $ | — | | $ | 595,679 | | $ | 3,788,198 |
| (1) | Includes the Partnership’s equity method investments (see Note 10). |
|