Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.24.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting

23. 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 the Company’s chief operating decision maker reviews such financial information. The Company’s reportable segments are retail, wholesale, fleet fueling and GPMP. 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 retail convenience stores, the Company owns the merchandise and fuel inventory and employs personnel to manage the store.

The wholesale segment supplies fuel to dealers, sub-wholesalers and bulk and spot 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 dealers.

The fleet fueling segment, which was added to the Company’s business upon the closing of the Quarles Acquisition on July 22, 2022, includes the operation of proprietary and third-party cardlock locations (unstaffed fueling locations), and commissions from the sales of fuel using proprietary fuel cards that provide customers access to a nationwide network of fueling sites.

The GPMP segment includes GPMP and includes its sale and supply of fuel to substantially all of GPM’s sites that sell fuel in the retail and wholesale segments, at GPMP’s cost of fuel (including taxes and transportation) plus a fixed margin (currently 5.0 cents per gallon), and charges a fixed fee primarily to sites in the fleet fueling segment which are not supplied by GPMP (currently 5.0 cents per gallon sold). GPMP also supplies fuel to a limited number of dealers and bulk purchasers.

The “All Other” segment includes the results of non-reportable segments which do not meet both quantitative and qualitative criteria as defined under ASC 280, Segment Reporting. The Company revised the composition of the “All Other” segment in the third quarter of 2022 in conjunction with the closing of the Quarles Acquisition.

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

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 U.S. and substantially all of the Company’s assets were within the U.S. No external customer represented more than 10% of revenues.

Inter-segment transactions primarily included the distribution of fuel by GPMP to substantially all of GPM’s sites that sell fuel (both in the retail and wholesale segments) and charges by GPMP to sites that sell fuel in the fleet fueling segment and certain

Company sites which are not supplied by GPMP. The effect of these inter-segment transactions was eliminated in the consolidated financial statements.

 

Year Ended December 31, 2023

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

3,858,777

 

 

$

3,039,904

 

 

$

530,937

 

 

$

3,681

 

 

$

31,073

 

 

$

7,464,372

 

Merchandise revenue

 

 

1,838,001

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,838,001

 

Other revenues, net

 

 

74,406

 

 

 

25,775

 

 

 

7,818

 

 

 

939

 

 

 

1,420

 

 

 

110,358

 

Total revenues from external customers

 

 

5,771,184

 

 

 

3,065,679

 

 

 

538,755

 

 

 

4,620

 

 

 

32,493

 

 

 

9,412,731

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,160,146

 

 

 

19,643

 

 

 

5,179,789

 

Total revenues from segments

 

 

5,771,184

 

 

 

3,065,679

 

 

 

538,755

 

 

 

5,164,766

 

 

 

52,136

 

 

 

14,592,520

 

Operating income

 

 

259,326

 

 

 

30,578

 

 

 

34,572

 

 

 

102,446

 

 

 

430

 

 

 

427,352

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

 

 

 

(29,487

)

 

 

—

 

 

 

(29,487

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(39

)

 

 

(39

)

Net income from segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

397,826

 

 

Year Ended December 31, 2022

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

3,887,549

 

 

$

3,234,145

 

 

$

270,670

 

 

$

5,160

 

 

$

3,566

 

 

$

7,401,090

 

Merchandise revenue

 

 

1,647,642

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,647,642

 

Other revenues, net

 

 

67,280

 

 

 

23,451

 

 

 

2,178

 

 

 

1,024

 

 

 

134

 

 

 

94,067

 

Total revenues from external customers

 

 

5,602,471

 

 

 

3,257,596

 

 

 

272,848

 

 

 

6,184

 

 

 

3,700

 

 

 

9,142,799

 

Inter-segment

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,678,167

 

 

 

4,264

 

 

 

5,682,431

 

Total revenues from segments

 

 

5,602,471

 

 

 

3,257,596

 

 

 

272,848

 

 

 

5,684,351

 

 

 

7,964

 

 

 

14,825,230

 

Operating income

 

 

264,552

 

 

 

33,864

 

 

 

18,382

 

 

 

89,035

 

 

 

792

 

 

 

406,625

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

 

 

 

(11,654

)

 

 

—

 

 

 

(11,654

)

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

177

 

 

 

177

 

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(74

)

 

 

(74

)

Net income from segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

395,074

 

 

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 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 other financial expenses, net

 

 

 

 

 

 

 

 

(14,363

)

 

 

—

 

 

 

(14,363

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

(221

)

 

 

(221

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

186

 

 

 

186

 

Net income from segments

 

 

 

 

 

 

 

 

 

 

 

 

 

$

340,716

 

 

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

 

 

 

For the Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Total revenues from segments

 

$

14,592,520

 

 

$

14,825,230

 

 

$

11,802,889

 

Elimination of inter-segment revenues

 

 

(5,179,789

)

 

 

(5,682,431

)

 

 

(4,385,491

)

Total revenues

 

$

9,412,731

 

 

$

9,142,799

 

 

$

7,417,398

 

 

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

 

 

 

For the Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Net income from segments

 

$

397,826

 

 

$

395,074

 

 

$

340,716

 

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

Store operating expenses

 

 

(13,647

)

 

 

2,264

 

 

 

3,287

 

General and administrative expenses

 

 

(162,132

)

 

 

(137,072

)

 

 

(121,697

)

Depreciation and amortization

 

 

(120,232

)

 

 

(94,383

)

 

 

(89,822

)

Other expenses, net

 

 

(13,327

)

 

 

(9,816

)

 

 

(3,536

)

Interest and other financial expenses, net

 

 

(41,756

)

 

 

(48,355

)

 

 

(58,108

)

Income tax expense

 

 

(12,166

)

 

 

(35,734

)

 

 

(11,413

)

Net income

 

$

34,566

 

 

$

71,978

 

 

$

59,427