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Segment Reporting
9 Months Ended
Sep. 30, 2021
Segment Reporting  
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