| Goodwill and Intangible Assets |
9. Goodwill and Intangible Assets
Goodwill
The Company reports revenue and operating results for its operating segments: retail, wholesale, fleet fueling and GPMP (see Note 23 for a description of these operating segments). The following summarizes the activity in goodwill, by segment:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
|
GPMP |
|
|
Total |
|
|
|
(in thousands) |
|
Beginning balance, January 1, 2023 |
|
$ |
14,861 |
|
|
$ |
202,436 |
|
|
$ |
217,297 |
|
Goodwill attributable to acquisitions during the year |
|
|
— |
|
|
|
71,570 |
|
|
|
71,570 |
|
Goodwill adjustment – Pride Acquisition |
|
|
2,891 |
|
|
|
415 |
|
|
|
3,306 |
|
Ending balance, December 31, 2023 |
|
$ |
17,752 |
|
|
$ |
274,421 |
|
|
$ |
292,173 |
|
Goodwill adjustment – WTG Acquisition |
|
|
— |
|
|
|
7,800 |
|
|
|
7,800 |
|
Ending balance, December 31, 2024 |
|
$ |
17,752 |
|
|
$ |
282,221 |
|
|
$ |
299,973 |
|
Intangible Assets, Net
Intangible assets consisted of the following:
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|
|
|
|
|
|
As of December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
Wholesale fuel supply agreements |
|
$ |
219,082 |
|
|
$ |
219,262 |
|
Trade names |
|
|
39,401 |
|
|
|
39,584 |
|
Options to acquire ownership rights |
|
|
1,315 |
|
|
|
3,241 |
|
Non-contractual customer relationships |
|
|
38,520 |
|
|
|
46,720 |
|
Other intangibles |
|
|
21,713 |
|
|
|
21,825 |
|
Accumulated amortization – Wholesale fuel supply agreements |
|
|
(78,338 |
) |
|
|
(59,383 |
) |
Accumulated amortization – Trade names |
|
|
(36,196 |
) |
|
|
(34,891 |
) |
Accumulated amortization – Options to acquire ownership rights |
|
|
(685 |
) |
|
|
(1,377 |
) |
Accumulated amortization – Non-contractual customer relationships |
|
|
(4,100 |
) |
|
|
(2,413 |
) |
Accumulated amortization – Other intangibles |
|
|
(18,357 |
) |
|
|
(18,016 |
) |
|
|
$ |
182,355 |
|
|
$ |
214,552 |
|
Franchise rights and liquor licenses of $2.8 million and $3.1 million as of December 31, 2024 and 2023, respectively, were not being amortized.
Amortization expense related to definite lived intangible assets was $22.4 million, $23.4 million and $20.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Estimated amortization expense for each of the next five years and thereafter is expected to be as follows:
|
|
|
|
|
Future Amortization Expense |
|
Amount |
|
|
|
(in thousands) |
|
2025 |
|
$ |
22,237 |
|
2026 |
|
|
21,888 |
|
2027 |
|
|
20,615 |
|
2028 |
|
|
20,129 |
|
2029 |
|
|
19,907 |
|
Thereafter |
|
|
74,753 |
|
|
|
$ |
179,529 |
|
|