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Segment Reporting (Tables)
3 Months Ended
Mar. 31, 2014
Segment Reporting  
Summary of financial information for the reportable segments

Summarized financial information for the Partnership’s reportable segments is presented in the table below (in thousands):

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2014

 

2013

 

Wholesale Segment (1):

 

 

 

 

 

Sales

 

 

 

 

 

Gasoline and gasoline blendstocks

 

$

1,994,556

 

$

2,201,469

 

Crude oil (2)

 

591,229

 

983,965

 

Other oils and related products (3)

 

1,412,771

 

1,332,554

 

Total

 

$

3,998,556

 

$

4,517,988

 

Product margin

 

 

 

 

 

Gasoline and gasoline blendstocks (4)

 

$

49,663

 

$

(29,426

)

Crude oil (2)

 

23,490

 

26,168

 

Other oils and related products (3)

 

34,616

 

17,658

 

Total (4)

 

$

107,769

 

$

14,400

 

Gasoline Distribution and Station Operations Segment:

 

 

 

 

 

Sales

 

 

 

 

 

Gasoline

 

$

768,904

 

$

745,590

 

Station operations (5)

 

33,972

 

31,608

 

Total

 

$

802,876

 

$

777,198

 

Product margin

 

 

 

 

 

Gasoline

 

$

33,280

 

$

28,193

 

Station operations (5)

 

19,134

 

17,836

 

Total

 

$

52,414

 

$

46,029

 

Commercial Segment:

 

 

 

 

 

Sales

 

$

315,496

 

$

294,004

 

Product margin

 

$

12,329

 

$

10,425

 

Combined sales and product margin:

 

 

 

 

 

Sales

 

$

5,116,928

 

$

5,589,190

 

Product margin (4)(6)

 

$

172,512

 

$

70,854

 

Depreciation allocated to cost of sales

 

(14,151

)

(11,782

)

Combined gross profit (4)

 

$

158,361

 

$

59,072

 

 

(1)         Segment reporting results for the prior period have been reclassified to conform to the Partnership’s current presentation.

(2)         Crude oil consists of the Partnership’s crude oil sales and revenue from its logistics activities and includes the February 2013 acquisitions of Basin Transload and Cascade Kelly.  As the Basin Transload and Cascade Kelly assets were not in place for a portion of the quarter ended March 31, 2013, the above results are not directly comparable for periods prior to February 2013.

(3)         Other oils and related products primarily consist of distillates, residual oil and propane.

(4)         As of March 31, 2014, the mark to market loss related to RIN forward commitments was $0.1 million and the mark to market value of a Renewable Volume Obligation (“RVO”) deficiency was $3.9 million.  As of March 31, 2013, the mark to market loss related to RIN forward commitments was $32.7 million and the mark to market value of a RVO deficiency was $2.6 million.

(5)         Station operations primarily consist of convenience store sales at the Partnership’s directly operated stores and rental income from dealer leased or commission agent leased gasoline stations.

(6)         Product margin is a non-GAAP financial measure used by management and external users of the Partnership’s consolidated financial statements to assess the Partnership’s business.  The table above includes a reconciliation of product margin on a combined basis to gross profit, a directly comparable GAAP measure.

 

Schedule of reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements

A reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements is as follows (in thousands):

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2014

 

2013

 

Combined gross profit (1)

 

 $

158,361

 

 $

59,072

 

Operating costs and expenses not allocated to operating segments:

 

 

 

 

 

Selling, general and administrative expenses

 

37,298

 

25,663

 

Operating expenses

 

47,952

 

43,340

 

Amortization expense

 

4,528

 

3,774

 

Total operating costs and expenses

 

89,778

 

72,777

 

Operating income (loss)

 

68,583

 

(13,705

)

Interest expense

 

(11,107

)

(10,486

)

Income tax (expense) benefit

 

(322

)

1,875

 

Net income (loss) (1)

 

57,154

 

(22,316

)

Net (income) loss attributable to noncontrolling interest

 

(144

)

249

 

Net income (loss) attributable to Global Partners LP (1)

 

 $

57,010

 

 $

(22,067

)

 

(1)          As of March 31, 2014, the mark to market loss related to RIN forward commitments was $0.1 million and the mark to market value of a RVO deficiency was $3.9 million.  As of March 31, 2013, the mark to market loss related to RIN forward commitments was $32.7 million and the mark to market value of a RVO deficiency was $2.6 million.

 

Schedule of total assets by reportable segment

The table below presents total assets by reportable segment at March 31, 2014 and December 31, 2013 (in thousands):

 

 

 

Wholesale

 

Commercial

 

GDSO

 

Unallocated (1)

 

Total

 

March 31, 2014

 

$

79,589

 

$

 

$

496,310

 

$

1,730,604

 

$

2,306,503

 

December 31, 3013

 

$

83,208

 

$

 

$

499,966

 

$

1,844,748

 

$

2,427,922

 

 

(1)          Includes 40% owned by the noncontrolling interest at Basin Transload.