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Segment Reporting
3 Months Ended
Mar. 31, 2024
Segment Reporting  
Segment Reporting

Note 13.    Segment Reporting

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

Three Months Ended

March 31,

 

    

2024

    

2023

 

Wholesale Segment:

Sales

Gasoline and gasoline blendstocks

$

1,373,592

$

1,175,623

Distillates and other oils (1)

 

1,265,756

 

1,283,800

Total

$

2,639,348

$

2,459,423

Product margin

Gasoline and gasoline blendstocks

$

29,761

$

20,386

Distillates and other oils (1)

 

19,659

 

32,747

Total

$

49,420

$

53,133

Gasoline Distribution and Station Operations Segment:

Sales

Gasoline

$

1,097,277

$

1,185,866

Station operations (2)

 

130,168

 

127,166

Total

$

1,227,445

$

1,313,032

Product margin

Gasoline

$

121,630

$

120,816

Station operations (2)

 

66,087

 

62,730

Total

$

187,717

$

183,546

Commercial Segment:

Sales

$

278,599

$

257,872

Product margin

$

6,968

$

8,127

Combined sales and Product margin:

Sales

$

4,145,392

$

4,030,327

Product margin (3)

$

244,105

$

244,806

Depreciation allocated to cost of sales

 

(28,970)

 

(22,742)

Combined gross profit

$

215,135

$

222,064

(1)Distillates and other oils (primarily residual oil and crude oil).
(2)Station operations consist of convenience store and prepared food sales, rental income and sundries.
(3)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 99 million gallons and 96 million gallons of the GDSO segment’s sales for the three months ended March 31, 2024 and 2023, 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

March 31,

 

    

2024

    

2023

 

Combined gross profit

$

215,135

$

222,064

Operating costs and expenses not allocated to operating segments:

Selling, general and administrative expenses

 

69,781

 

62,256

Operating expenses

 

120,150

 

108,353

Amortization expense

1,869

2,084

Net gain on sale and disposition of assets

(2,501)

(2,128)

Total operating costs and expenses

 

189,299

 

170,565

Operating income

 

25,836

 

51,499

Loss from equity method investments

(1,379)

Interest expense

 

(29,696)

 

(22,068)

Income tax expense

 

(363)

 

(400)

Net (loss) income

$

(5,602)

$

29,031

The Partnership’s foreign assets and foreign sales were immaterial as of and for the three months ended March 31, 2024 and 2023.

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 March 31, 2024 and December 31, 2023 (in thousands):

 

Wholesale

 

Commercial

 

GDSO

 

Unallocated (1)

 

Total

March 31, 2024

   

$

868,389

   

$

   

$

1,886,857

   

$

710,386

   

$

3,465,632

December 31, 2023

   

$

862,850

   

$

   

$

1,910,058

   

$

673,103

   

$

3,446,011

(1)Includes the Partnership’s proportional share of assets related to its equity method investments (see Note 10).