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Segment Reporting
9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] Segment Reporting
Our financial statements reflect two reportable segments, Fuel Distribution and Marketing and All Other.
We report Adjusted EBITDA by segment as a measure of segment performance. We define Adjusted EBITDA as net income before net interest expense, income tax expense and depreciation, amortization and accretion expense, non-cash unit-based compensation expense, gains and losses on disposal of assets and impairment charges, unrealized gains and losses on commodity derivatives, inventory adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations. Inventory adjustments that are excluded from the calculation of Adjusted EBITDA represent changes in lower of cost or market reserves on the Partnership's inventory. These amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period.
The following table presents financial information by segment for the three and nine months ended September 30, 2020 and 2019: 
Three Months Ended September 30,
20202019
Fuel Distribution and MarketingAll OtherIntercompany EliminationsTotalsFuel Distribution and MarketingAll OtherIntercompany EliminationsTotals
(in millions)
Revenue
Motor fuel sales$2,600 $111 $2,711 $4,041 $184 $4,225 
Non motor fuel sales14 46 60 14 55 69 
Lease income30 34 31 37 
Intersegment sales259 — (259)— 430 — (430)— 
Total revenue2,903 161 (259)2,805 4,516 245 (430)4,331 
Gross profit (1)
Motor fuel224 13 237 195 22 217 
Non motor fuel11 26 37 10 28 38 
Lease30 34 31 37 
Total gross profit265 43 308 236 56 292 
Total operating expenses122 39 161 141 34 175 
Operating income143 147 95 22 117 
Interest expense, net(37)(6)(43)(37)(8)(45)
Other income (expense), net— — — — — — 
Equity in earnings of unconsolidated affiliate— — — — 
Income (loss) from operations before income taxes107 (2)105 58 14 72 
Income tax expense— 
Net income (loss) and comprehensive income (loss)$107 $(7)$100 $57 $$66 
Depreciation, amortization and accretion44 50 36 45 
Interest expense, net37 43 37 45 
Income tax expense— 
Non-cash unit-based compensation expense— — 
Gain on disposal of assets and impairment charges— (1)(1)(4)— (4)
Unrealized gain on commodity derivatives(6)— (6)(1)— (1)
Inventory adjustments(14)(11)26 — 26 
Equity in earnings of unconsolidated affiliate(1)— (1)— — — 
Adjusted EBITDA related to unconsolidated affiliate— — 
Other non-cash adjustments— — 
Adjusted EBITDA$177 $12 $189 $161 $31 $192 
Capital expenditures$19 $$21 $32 $15 $47 
Total assets as of September 30, 2020 and
December 31, 2019, respectively
$3,878 $1,245 $5,123 $4,189 $1,249 $5,438 
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(1)    Excludes depreciation, amortization and accretion.
Nine Months Ended September 30,
20202019
Fuel Distribution and MarketingAll OtherIntercompany EliminationsTotalsFuel Distribution and MarketingAll OtherIntercompany EliminationsTotals
(in millions)
Revenue
Motor fuel sales$7,569 $300 $7,869 $11,676 $498 $12,174 
Non motor fuel sales45 140 185 49 168 217 
Lease income89 14 103 94 13 107 
Intersegment sales704 — (704)— 1,257 48 (1,305)— 
Total revenue8,407 454 (704)8,157 13,076 727 (1,305)12,498 
Gross profit (1)
Motor fuel493 59 552 624 69 693 
Non motor fuel35 84 119 40 91 131 
Lease89 14 103 94 13 107 
Total gross profit617 157 774 758 173 931 
Total operating expenses394 107 501 415 150 565 
Operating income223 50 273 343 23 366 
Interest expense, net(112)(19)(131)(108)(22)(130)
Other income (expense), net— — — — 
Equity in earnings of unconsolidated affiliate— — — — 
Income from operations before income taxes114 31 145 238 239 
Income tax expense13 16 
Net income (loss) and
comprehensive income (loss)
$111 $18 $129 $233 $(3)$230 
Depreciation, amortization and accretion117 25 142 107 30 137 
Interest expense, net112 19 131 108 22 130 
Income tax expense13 16 
Non-cash unit-based compensation expense11 — 11 10 — 10 
Loss on disposal of assets and impairment charges— — 46 46 
Unrealized gain on commodity derivatives— — — (4)— (4)
Inventory adjustments125 126 (71)— (71)
Equity in earnings of unconsolidated affiliate(3)— (3)— — — 
Adjusted EBITDA related to unconsolidated affiliate— — 
Other non-cash adjustments14 — 14 — 
Adjusted EBITDA$497 $83 $580 $398 $99 $497 
Capital expenditures$59 $21 $80 $79 $24 $103 
Total assets as of September 30, 2020 and
December 31, 2019, respectively
$3,878 $1,245 $5,123 $4,189 $1,249 $5,438 
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(1)    Excludes depreciation, amortization and accretion.