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, | | 2020 | | 2019 | | Fuel Distribution and Marketing | | All Other | | Intercompany Eliminations | | Totals | | Fuel Distribution and Marketing | | All Other | | Intercompany Eliminations | | Totals | | (in millions) | Revenue | | | | | | | | | | | | | | | | Motor fuel sales | $ | 2,600 | | | $ | 111 | | | | | $ | 2,711 | | | $ | 4,041 | | | $ | 184 | | | | | $ | 4,225 | | Non motor fuel sales | 14 | | | 46 | | | | | 60 | | | 14 | | | 55 | | | | | 69 | | Lease income | 30 | | | 4 | | | | | 34 | | | 31 | | | 6 | | | | | 37 | | Intersegment sales | 259 | | | — | | | (259) | | | — | | | 430 | | | — | | | (430) | | | — | | Total revenue | 2,903 | | | 161 | | | (259) | | | 2,805 | | | 4,516 | | | 245 | | | (430) | | | 4,331 | | Gross profit (1) | | | | | | | | | | | | | | | | Motor fuel | 224 | | | 13 | | | | | 237 | | | 195 | | | 22 | | | | | 217 | | Non motor fuel | 11 | | | 26 | | | | | 37 | | | 10 | | | 28 | | | | | 38 | | Lease | 30 | | | 4 | | | | | 34 | | | 31 | | | 6 | | | | | 37 | | Total gross profit | 265 | | | 43 | | | | | 308 | | | 236 | | | 56 | | | | | 292 | | Total operating expenses | 122 | | | 39 | | | | | 161 | | | 141 | | | 34 | | | | | 175 | | Operating income | 143 | | | 4 | | | | | 147 | | | 95 | | | 22 | | | | | 117 | | Interest expense, net | (37) | | | (6) | | | | | (43) | | | (37) | | | (8) | | | | | (45) | | Other income (expense), net | — | | | — | | | | | — | | | — | | | — | | | | | — | | Equity in earnings of unconsolidated affiliate | 1 | | | — | | | | | 1 | | | — | | | — | | | | | — | | Income (loss) from operations before income taxes | 107 | | | (2) | | | | | 105 | | | 58 | | | 14 | | | | | 72 | | Income tax expense | — | | | 5 | | | | | 5 | | | 1 | | | 5 | | | | | 6 | | Net income (loss) and comprehensive income (loss) | $ | 107 | | | $ | (7) | | | | | $ | 100 | | | $ | 57 | | | $ | 9 | | | | | $ | 66 | | Depreciation, amortization and accretion | 44 | | | 6 | | | | | 50 | | | 36 | | | 9 | | | | | 45 | | Interest expense, net | 37 | | | 6 | | | | | 43 | | | 37 | | | 8 | | | | | 45 | | Income tax expense | — | | | 5 | | | | | 5 | | | 1 | | | 5 | | | | | 6 | | Non-cash unit-based compensation expense | 4 | | | — | | | | | 4 | | | 4 | | | — | | | | | 4 | | Gain on disposal of assets and impairment charges | — | | | (1) | | | | | (1) | | | (4) | | | — | | | | | (4) | | Unrealized gain on commodity derivatives | (6) | | | — | | | | | (6) | | | (1) | | | — | | | | | (1) | | Inventory adjustments | (14) | | | 3 | | | | | (11) | | | 26 | | | — | | | | | 26 | | Equity in earnings of unconsolidated affiliate | (1) | | | — | | | | | (1) | | | — | | | — | | | | | — | | Adjusted EBITDA related to unconsolidated affiliate | 2 | | | — | | | | | 2 | | | 1 | | | — | | | | | 1 | | Other non-cash adjustments | 4 | | | — | | | | | 4 | | | 4 | | | — | | | | | 4 | | Adjusted EBITDA | $ | 177 | | | $ | 12 | | | | | $ | 189 | | | $ | 161 | | | $ | 31 | | | | | $ | 192 | | Capital expenditures | $ | 19 | | | $ | 2 | | | | | $ | 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 | |
________________________________ (1) Excludes depreciation, amortization and accretion. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | 2020 | | 2019 | | Fuel Distribution and Marketing | | All Other | | Intercompany Eliminations | | Totals | | Fuel Distribution and Marketing | | All Other | | Intercompany Eliminations | | Totals | | (in millions) | Revenue | | | | | | | | | | | | | | | | Motor fuel sales | $ | 7,569 | | | $ | 300 | | | | | $ | 7,869 | | | $ | 11,676 | | | $ | 498 | | | | | $ | 12,174 | | Non motor fuel sales | 45 | | | 140 | | | | | 185 | | | 49 | | | 168 | | | | | 217 | | Lease income | 89 | | | 14 | | | | | 103 | | | 94 | | | 13 | | | | | 107 | | Intersegment sales | 704 | | | — | | | (704) | | | — | | | 1,257 | | | 48 | | | (1,305) | | | — | | Total revenue | 8,407 | | | 454 | | | (704) | | | 8,157 | | | 13,076 | | | 727 | | | (1,305) | | | 12,498 | | Gross profit (1) | | | | | | | | | | | | | | | | Motor fuel | 493 | | | 59 | | | | | 552 | | | 624 | | | 69 | | | | | 693 | | Non motor fuel | 35 | | | 84 | | | | | 119 | | | 40 | | | 91 | | | | | 131 | | Lease | 89 | | | 14 | | | | | 103 | | | 94 | | | 13 | | | | | 107 | | Total gross profit | 617 | | | 157 | | | | | 774 | | | 758 | | | 173 | | | | | 931 | | Total operating expenses | 394 | | | 107 | | | | | 501 | | | 415 | | | 150 | | | | | 565 | | Operating income | 223 | | | 50 | | | | | 273 | | | 343 | | | 23 | | | | | 366 | | Interest expense, net | (112) | | | (19) | | | | | (131) | | | (108) | | | (22) | | | | | (130) | | Other income (expense), net | — | | | — | | | | | — | | | 3 | | | — | | | | | 3 | | Equity in earnings of unconsolidated affiliate | 3 | | | — | | | | | 3 | | | — | | | — | | | | | — | | Income from operations before income taxes | 114 | | | 31 | | | | | 145 | | | 238 | | | 1 | | | | | 239 | | Income tax expense | 3 | | | 13 | | | | | 16 | | | 5 | | | 4 | | | | | 9 | | Net income (loss) and comprehensive income (loss) | $ | 111 | | | $ | 18 | | | | | $ | 129 | | | $ | 233 | | | $ | (3) | | | | | $ | 230 | | Depreciation, amortization and accretion | 117 | | | 25 | | | | | 142 | | | 107 | | | 30 | | | | | 137 | | Interest expense, net | 112 | | | 19 | | | | | 131 | | | 108 | | | 22 | | | | | 130 | | Income tax expense | 3 | | | 13 | | | | | 16 | | | 5 | | | 4 | | | | | 9 | | Non-cash unit-based compensation expense | 11 | | | — | | | | | 11 | | | 10 | | | — | | | | | 10 | | Loss on disposal of assets and impairment charges | — | | | 7 | | | | | 7 | | | — | | | 46 | | | | | 46 | | Unrealized gain on commodity derivatives | — | | | — | | | | | — | | | (4) | | | — | | | | | (4) | | Inventory adjustments | 125 | | | 1 | | | | | 126 | | | (71) | | | — | | | | | (71) | | Equity in earnings of unconsolidated affiliate | (3) | | | — | | | | | (3) | | | — | | | — | | | | | — | | Adjusted EBITDA related to unconsolidated affiliate | 7 | | | — | | | | | 7 | | | 1 | | | — | | | | | 1 | | Other non-cash adjustments | 14 | | | — | | | | | 14 | | | 9 | | | — | | | | | 9 | | 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 | |
________________________________ (1) Excludes depreciation, amortization and accretion.
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