Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.22.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting

22. Segment Reporting

The reportable segments were determined based on information reviewed by the chief operating decision maker for operational decision-making purposes and the segment information is prepared on the same basis that our chief operating decision maker reviews such financial information. The Company’s reporting segments are the retail segment, the wholesale segment and the GPMP segment. The Company defines segment earnings as operating income.

The retail segment includes the operation of a chain of retail stores, which includes convenience stores selling fuel products and other merchandise to retail customers. At its Company operated convenience stores, the Company owns the merchandise and fuel inventory and employs personnel to manage the store.

The wholesale segment supplies fuel to independent dealers, sub-wholesalers and bulk purchasers, on either a cost plus or consignment basis. For consignment arrangements, the Company retains ownership of the fuel inventory at the site, is responsible for the pricing of the fuel to the end consumer, and shares the gross profit with the independent dealers.

The GPMP segment includes GPMP and primarily includes the sale and supply of fuel to GPM and its subsidiaries that sell fuel (both in the retail and wholesale segments) at GPMP’s cost of fuel (currently including taxes and certain transportation costs) plus a fixed margin (4.5 cents per gallon prior to October 1, 2020 and 5.0 cents per gallon thereafter) and the supply of fuel to a small number of independent dealers and bulk and spot purchasers.

The “All Other” segment includes the results of non-reportable segments which do not meet both quantitative and qualitive criteria as defined under ASC 280, Segment Reporting.

The majority of general and administrative expenses, depreciation and amortization, net other expenses, net interest and other financial expenses and income taxes are not allocated to the segments, as well as minor other income items including intercompany operating leases.

With the exception of goodwill as described in Note 9 above, assets and liabilities relevant to the reportable segments are not assigned to any particular segment, but rather, managed at the consolidated level. All reportable segment revenues were generated from sites within the US and substantially all of the Company’s assets were within the US. No external customer represented more than 10% of revenues.

Inter-segment transactions primarily included the distribution of fuel by GPMP to GPM and its subsidiaries that sell fuel (both in the retail and wholesale segments). The effect of these inter-segment transactions was eliminated in the consolidated financial statements.

 

Year Ended December 31, 2021

 

Retail

 

 

Wholesale

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

3,048,893

 

 

$

2,659,706

 

 

$

5,734

 

 

$

—

 

 

$

5,714,333

 

Merchandise revenue

 

 

1,616,404

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,616,404

 

Other revenues, net

 

 

63,271

 

 

 

22,298

 

 

 

1,092

 

 

 

—

 

 

 

86,661

 

Total revenues from external customers

 

 

4,728,568

 

 

 

2,682,004

 

 

 

6,826

 

 

 

—

 

 

 

7,417,398

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

4,384,227

 

 

 

1,264

 

 

 

4,385,491

 

Total revenues from reportable segments

 

 

4,728,568

 

 

 

2,682,004

 

 

 

4,391,053

 

 

 

1,264

 

 

 

11,802,889

 

Operating income

 

 

240,233

 

 

 

21,998

 

 

 

91,619

 

 

 

1,264

 

 

 

355,114

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(14,363

)

 

 

—

 

 

 

(14,363

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

(221

)

 

 

(221

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

186

 

 

 

186

 

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

340,716

 

 

Year Ended December 31, 2020

 

Retail

 

 

Wholesale

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,940,303

 

 

$

508,175

 

 

$

3,923

 

 

$

—

 

 

$

2,452,401

 

Merchandise revenue

 

 

1,494,342

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,494,342

 

Other revenues, net

 

 

53,424

 

 

 

9,335

 

 

 

897

 

 

 

—

 

 

 

63,656

 

Total revenues from external customers

 

 

3,488,069

 

 

 

517,510

 

 

 

4,820

 

 

 

—

 

 

 

4,010,399

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

1,706,233

 

 

 

3,041

 

 

 

1,709,274

 

Total revenues from reportable segments

 

 

3,488,069

 

 

 

517,510

 

 

 

1,711,053

 

 

 

3,041

 

 

 

5,719,673

 

Operating income

 

 

200,000

 

 

 

3,523

 

 

 

47,036

 

 

 

3,041

 

 

 

253,600

 

Interest and financial expenses, net

 

 

 

 

 

 

 

 

(6,277

)

 

 

(1,817

)

 

 

(8,094

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

(303

)

 

 

(303

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

(1,269

)

 

 

(1,269

)

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

243,934

 

 

Year Ended December 31, 2019

 

Retail

 

 

Wholesale

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

2,537,455

 

 

$

159,597

 

 

$

6,388

 

 

$

—

 

 

$

2,703,440

 

Merchandise revenue

 

 

1,375,438

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,375,438

 

Other revenues, net

 

 

43,882

 

 

 

5,264

 

 

 

784

 

 

 

—

 

 

 

49,930

 

Total revenues from external customers

 

 

3,956,775

 

 

 

164,861

 

 

 

7,172

 

 

 

—

 

 

 

4,128,808

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

2,042,714

 

 

 

6,394

 

 

 

2,049,108

 

Total revenues from reportable segments

 

 

3,956,775

 

 

 

164,861

 

 

 

2,049,886

 

 

 

6,394

 

 

 

6,177,916

 

Operating income

 

 

90,454

 

 

 

52

 

 

 

43,500

 

 

 

6,394

 

 

 

140,400

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

(2,484

)

 

 

(677

)

 

 

(3,161

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

(1,038

)

 

 

(1,038

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

(507

)

 

 

(507

)

Net income from reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

135,694

 

 

A reconciliation of total revenues from reportable segments to total revenues on the consolidated statements of operations was as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

Total revenues from reportable segments

 

$

11,802,889

 

 

$

5,719,673

 

 

$

6,177,916

 

Other revenues, net

 

 

—

 

 

 

(167

)

 

 

(118

)

Elimination of inter-segment revenues

 

 

(4,385,491

)

 

 

(1,709,274

)

 

 

(2,049,108

)

Total revenues

 

$

7,417,398

 

 

$

4,010,232

 

 

$

4,128,690

 

 

A reconciliation of net income from reportable segments to net income (loss) on the consolidated statements of operations was as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

Net income from reportable segments

 

$

340,716

 

 

$

243,934

 

 

$

135,694

 

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

Other revenues, net

 

 

—

 

 

 

(167

)

 

 

(118

)

Store operating expenses

 

 

3,287

 

 

 

(2,380

)

 

 

(4,116

)

General and administrative expenses

 

 

(121,697

)

 

 

(91,447

)

 

 

(66,743

)

Depreciation and amortization

 

 

(89,822

)

 

 

(67,023

)

 

 

(58,031

)

Other expenses, net

 

 

(3,536

)

 

 

(9,228

)

 

 

(3,674

)

Interest and other financial expenses, net

 

 

(58,108

)

 

 

(44,852

)

 

 

(45,045

)

Income tax (expense) benefit

 

 

(11,413

)

 

 

1,802

 

 

 

(5,129

)

Net income (loss)

 

$

59,427

 

 

$

30,639

 

 

$

(47,162

)