Segment Reporting |
Note 14. Segment Reporting Summarized financial information for the Partnership’s reportable segments is presented in the table below (in thousands): | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | | September 30, | | September 30, | | | | 2021 | | 2020 | | 2021 | | 2020 | | Wholesale Segment: (1) | | | | | | | | | | | | | | Sales | | | | | | | | | | | | | | Gasoline and gasoline blendstocks | | $ | 1,371,621 | | $ | 831,332 | | $ | 3,696,677 | | $ | 2,356,753 | | Crude oil (2) | | | 13,194 | | | 57,518 | | | 47,128 | | | 73,010 | | Other oils and related products (3) | | | 451,172 | | | 270,012 | | | 1,641,250 | | | 1,181,481 | | Total | | $ | 1,835,987 | | $ | 1,158,862 | | $ | 5,385,055 | | $ | 3,611,244 | | Product margin | | | | | | | | | | | | | | Gasoline and gasoline blendstocks | | $ | 22,458 | | $ | 17,136 | | $ | 62,379 | | $ | 84,966 | | Crude oil (2) | | | (2,814) | | | (2,729) | | | (10,662) | | | 2,004 | | Other oils and related products (3) | | | 22,625 | | | 14,523 | | | 54,580 | | | 59,414 | | Total | | $ | 42,269 | | $ | 28,930 | | $ | 106,297 | | $ | 146,384 | | Gasoline Distribution and Station Operations Segment: | | | | | | | | | | | | | | Sales | | | | | | | | | | | | | | Gasoline | | $ | 1,151,251 | | $ | 696,184 | | $ | 2,930,446 | | $ | 1,896,960 | | Station operations (4) | | | 134,126 | | | 122,856 | | | 357,452 | | | 325,577 | | Total | | $ | 1,285,377 | | $ | 819,040 | | $ | 3,287,898 | | $ | 2,222,537 | | Product margin | | | | | | | | | | | | | | Gasoline | | $ | 112,446 | | $ | 101,405 | | $ | 294,001 | | $ | 305,405 | | Station operations (4) | | | 65,269 | | | 57,462 | | | 176,567 | | | 154,904 | | Total | | $ | 177,715 | | $ | 158,867 | | $ | 470,568 | | $ | 460,309 | | Commercial Segment: (1) | | | | | | | | | | | | | | Sales | | $ | 202,546 | | $ | 83,480 | | $ | 483,429 | | $ | 292,271 | | Product margin | | $ | 3,916 | | $ | 1,545 | | $ | 10,807 | | $ | 9,398 | | Combined sales and Product margin: | | | | | | | | | | | | | | Sales | | $ | 3,323,910 | | $ | 2,061,382 | | $ | 9,156,382 | | $ | 6,126,052 | | Product margin (5) | | $ | 223,900 | | $ | 189,342 | | $ | 587,672 | | $ | 616,091 | | Depreciation allocated to cost of sales | | | (20,842) | | | (20,101) | | | (61,537) | | | (61,165) | | Combined gross profit | | $ | 203,058 | | $ | 169,241 | | $ | 526,135 | | $ | 554,926 | |
(1) | Segment reporting results for the three and nine months ended September 30, 2020 have been reclassified between the Wholesale and Commercial segments 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. |
(3) | Other oils and related products primarily consist of distillates and residual oil. |
(4) | Station operations consist of convenience store sales, rental income and sundries. |
(5) | 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 123 million gallons and 112 million gallons of the GDSO segment’s sales for the three months ended September 30, 2021 and 2020, respectively, and 342 million gallons and 300 million gallons of the GDSO segment’s sales for the nine months ended September 30, 2021 and 2020, 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. 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 | | Nine Months Ended | | | | September 30, | | September 30, | | | | 2021 | | 2020 | | 2021 | | 2020 | | Combined gross profit | | $ | 203,058 | | $ | 169,241 | | $ | 526,135 | | $ | 554,926 | | Operating costs and expenses not allocated to operating segments: | | | | | | | | | | | | | | Selling, general and administrative expenses | | | 54,674 | | | 43,218 | | | 155,029 | | | 143,158 | | Operating expenses | | | 92,151 | | | 82,235 | | | 260,848 | | | 241,502 | | Amortization expense | | | 2,742 | | | 2,712 | | | 8,138 | | | 8,137 | | Net (gain) loss on sale and disposition of assets | | | (192) | | | 691 | | | (675) | | | 623 | | Long-lived asset impairment | | | — | | | 203 | | | 188 | | | 1,927 | | Total operating costs and expenses | | | 149,375 | | | 129,059 | | | 423,528 | | | 395,347 | | Operating income | | | 53,683 | | | 40,182 | | | 102,607 | | | 159,579 | | Interest expense | | | (19,660) | | | (19,854) | | | (60,339) | | | (62,544) | | Income tax (expense) benefit | | | (386) | | | (2,136) | | | (789) | | | 205 | | Net income | | | 33,637 | | | 18,192 | | | 41,479 | | | 97,240 | | Net loss attributable to noncontrolling interest | | | — | | | 38 | | | — | | | 528 | | Net income attributable to Global Partners LP | | $ | 33,637 | | $ | 18,230 | | $ | 41,479 | | $ | 97,768 | |
The Partnership’s foreign assets and foreign sales were immaterial as of and for the three and nine months ended September 30, 2021 and 2020. Segment Assets The Partnership’s terminal assets are allocated to the Wholesale and Commercial segments, 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 September 30, 2021 and December 31, 2020 (in thousands): | | | | | | | | | | | | | | | | | | | Wholesale | | | Commercial | | | GDSO | | | Unallocated | | | Total | September 30, 2021 | | $ | 640,668 | | $ | — | | $ | 1,650,159 | | $ | 386,164 | | $ | 2,676,991 | December 31, 2020 | | $ | 649,301 | | $ | — | | $ | 1,581,397 | | $ | 309,802 | | $ | 2,540,500 |
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