Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Sep. 26, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'TRAVELCENTERS OF AMERICA LLC | ' |
Entity Central Index Key | '0001378453 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 37,667,636 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $105,394 | $85,657 |
Accounts receivable (less allowance for doubtful accounts of $1,533 as of June 30, 2014, and $1,304 as of December 31, 2013) | 167,308 | 105,932 |
Inventories | 187,414 | 199,201 |
Other current assets | 72,555 | 79,604 |
Total current assets | 532,671 | 470,394 |
Property and equipment, net | 717,751 | 704,866 |
Goodwill and intangible assets, net | 48,066 | 48,772 |
Other noncurrent assets | 34,408 | 33,250 |
Total assets | 1,332,896 | 1,257,282 |
Current liabilities: | ' | ' |
Accounts payable | 196,346 | 149,645 |
Current HPT Leases liabilities | 30,817 | 29,935 |
Other current liabilities | 137,884 | 124,033 |
Total current liabilities | 365,047 | 303,613 |
Noncurrent HPT Leases liabilities | 338,126 | 343,926 |
Senior Notes due 2028 | 110,000 | 110,000 |
Other noncurrent liabilities | 50,010 | 45,866 |
Total liabilities | 863,183 | 803,405 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Common shares, no par value, 39,158,666 shares authorized at June 30, 2014, and December 31, 2013, and 37,669,546 and 37,625,366 shares issued and outstanding at June 30, 2014, and December 31, 2013, respectively | 676,378 | 674,391 |
Accumulated other comprehensive income | 852 | 834 |
Accumulated deficit | -207,517 | -221,348 |
Total shareholders' equity | 469,713 | 453,877 |
Total liabilities and shareholders' equity | $1,332,896 | $1,257,282 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $1,533 | $1,304 |
Common shares, par value (in dollars per share) | ' | ' |
Common shares, shares authorized | 39,158,666 | 39,158,666 |
Common shares, shares issued | 37,669,546 | 37,625,366 |
Common shares, shares outstanding | 37,669,546 | 37,625,366 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Fuel | $1,658,172 | $1,635,400 | $3,247,818 | $3,260,507 |
Nonfuel | 414,854 | 380,041 | 789,520 | 709,235 |
Rent and royalties | 3,083 | 3,313 | 6,080 | 6,363 |
Total revenues | 2,076,109 | 2,018,754 | 4,043,418 | 3,976,105 |
Cost of goods sold (excluding depreciation): | ' | ' | ' | ' |
Fuel | 1,559,049 | 1,545,588 | 3,056,378 | 3,093,767 |
Nonfuel | 191,967 | 171,938 | 360,383 | 317,303 |
Total cost of goods sold (excluding depreciation) | 1,751,016 | 1,717,526 | 3,416,761 | 3,411,070 |
Operating expenses: | ' | ' | ' | ' |
Site level operating | 203,526 | 190,646 | 403,097 | 374,579 |
Selling, general & administrative | 25,100 | 24,482 | 51,896 | 47,709 |
Real estate rent | 53,731 | 52,104 | 107,935 | 103,988 |
Depreciation and amortization | 15,797 | 14,025 | 31,925 | 27,248 |
Total operating expenses | 298,154 | 281,257 | 594,853 | 553,524 |
Income from operations | 26,939 | 19,971 | 31,804 | 11,511 |
Acquisition costs | -149 | -205 | -759 | -320 |
Interest income | 45 | 307 | 84 | 542 |
Interest expense | -4,213 | -4,430 | -8,288 | -8,495 |
Income before income taxes and income from equity investees | 22,622 | 15,643 | 22,841 | 3,238 |
Provision for income taxes | 9,673 | 382 | 9,949 | 552 |
Income from equity investees | 685 | 723 | 939 | 1,159 |
Net income | 13,634 | 15,984 | 13,831 | 3,845 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment, net of taxes of $83 and $(85) for three month ended June 30, 2014 and 2013 and $(8) and $(138) for six months ended June 30, 2014 and 2013, respectively | 170 | -199 | -22 | -325 |
Equity interest in investee's unrealized gain (loss) on investments | 21 | -73 | 40 | -81 |
Other comprehensive income (loss) | 191 | -272 | 18 | -406 |
Comprehensive income | $13,825 | $15,712 | $13,849 | $3,439 |
Net income per share: | ' | ' | ' | ' |
Basic and diluted (in dollars per share) | $0.36 | $0.54 | $0.37 | $0.13 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | ' | ' | ' | ' |
Foreign currency translation adjustment, taxes | $83 | ($85) | ($8) | ($138) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $13,831 | $3,845 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Noncash rent expense | -4,565 | -4,400 |
Depreciation and amortization expense | 31,925 | 27,248 |
Deferred income tax provision | 4,032 | 180 |
Changes in assets and liabilities, net of effects of business acquisitions: | ' | ' |
Accounts receivable | -61,732 | -73,102 |
Inventories | 11,987 | -476 |
Other current assets | 2,006 | 6,079 |
Accounts payable and other current liabilities | 64,628 | 101,063 |
Other, net | 1,447 | 2,584 |
Net cash provided by operating activities | 63,559 | 63,021 |
Cash flows from investing activities: | ' | ' |
Proceeds from sales of property and equipment | 21,707 | 43,733 |
Investment in equity investee | -825 | ' |
Acquisitions of businesses, net of cash acquired | -3,202 | -27,887 |
Capital expenditures | -60,608 | -84,703 |
Net cash used in investing activities | -42,928 | -68,857 |
Cash flows from financing activities: | ' | ' |
Proceeds from sale-leaseback transactions with HPT | 301 | 1,535 |
Fees paid related to the issuance of common shares | -14 | ' |
Proceeds from Senior Notes issuance | ' | 110,000 |
Sale-leaseback financing obligation payments | -1,183 | -1,022 |
Payment of deferred financing fees | ' | -4,749 |
Net cash (used in) provided by financing activities | -896 | 105,764 |
Effect of exchange rate changes on cash | 2 | -26 |
Net increase in cash | 19,737 | 99,902 |
Cash and cash equivalents at the beginning of the period | 85,657 | 35,189 |
Cash and cash equivalents at the end of the period | 105,394 | 135,091 |
Supplemental disclosure of cash flow information: | ' | ' |
Interest paid (including rent classified as interest and net of capitalized interest) | 7,841 | 6,240 |
Income taxes paid (net of refunds) | $630 | $685 |
Basis_of_Presentation_Business
Basis of Presentation, Business Description and Organization | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation, Business Description and Organization | ' |
Basis of Presentation, Business Description and Organization | ' |
1. Basis of Presentation, Business Description and Organization | |
TravelCenters of America LLC, which we refer to as the Company or we, us and our, operates and franchises travel centers under the “TravelCenters of America,” “TA” and related brand names, or the TA brand, and the “Petro Stopping Centers” and “Petro” brand names, or the Petro brand, primarily along the U.S. interstate highway system. Our travel center customers include trucking fleets and their drivers, independent truck drivers and motorists. We also operate convenience stores with retail gasoline stations, primarily under the “Minit Mart” brand name, that generally serve motorists. Our travel centers include, on average, over 25 acres of land and typically offer customers diesel fuel and gasoline as well as nonfuel products and services such as truck repair and maintenance services, full service restaurants, quick service restaurants, or QSRs, travel and convenience stores and various other driver amenities. Our convenience stores have, on average, ten fueling positions and approximately 5,000 square feet of interior space offering merchandise and QSRs. We also collect rents, royalties and other fees from our franchisees. | |
At June 30, 2014, our geographically diverse business included 248 travel centers in 43 U.S. states and in Canada, including 173 travel centers operated under the TA brand, and 75 travel centers operated under the Petro brand. As of June 30, 2014, we operated 218 of these travel centers, which we refer to as Company operated sites, and our franchisees operated 30 of these travel centers. Of our 248 travel centers at June 30, 2014, we owned 34, we leased or managed 189, including 184 that we leased from Hospitality Properties Trust, or HPT, and franchisees owned or leased 25 from third parties. We sublease to franchisees five of the travel centers we lease from HPT. | |
As of June 30, 2014, we operated 34 convenience stores in four states, primarily Kentucky. Of our 34 convenience stores at June 30, 2014, we owned 27, and we leased or managed seven, including one that we leased from HPT. | |
We manage our business as one operating segment and, therefore, have one reportable segment. Our locations sell similar products and services, use similar processes to sell products and services, and sell products and services to similar customers. We sometimes make specific disclosures concerning fuel and nonfuel products and services because it facilitates our discussion of trends and operational initiatives within our business and industry. We have only a single travel center located in a foreign country, Canada, and we do not consider the revenues and assets related to our operations in Canada to be material to us. | |
The accompanying condensed consolidated financial statements are unaudited. These unaudited interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, applicable for interim financial statements. The disclosures do not include all the information necessary for complete financial statements in accordance with GAAP. These unaudited interim financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, or our Annual Report. In the opinion of our management, all adjustments, which include normal recurring adjustments, considered necessary for a fair presentation have been included. All intercompany transactions and balances have been eliminated. While our revenues are modestly seasonal, the quarterly variations in our operating results may reflect greater seasonal differences because our rent and certain other costs do not vary seasonally. For this and other reasons, our operating results for interim periods are not necessarily indicative of the results that may be expected for a full year. | |
Certain prior year amounts have been reclassified in the Condensed Consolidated Statements of Cash Flows to be consistent with the current year presentation. | |
Recently Issued Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, which establishes a comprehensive revenue recognition standard under GAAP for virtually all industries. The new standard will apply for annual periods beginning after December 15, 2016, including interim periods therein. Early adoption is prohibited. We have not yet determined the effects, if any, adoption of this update may have on our consolidated financial statements. | |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
2. Earnings Per Share | ||||||||||||||
Unvested shares issued under our share award plan are deemed participating securities because they participate equally in earnings with all of our other common shares. The following table presents a reconciliation from net income to the net income available to common shareholders and the related earnings per share. | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net income, as reported | $ | 13,634 | $ | 15,984 | $ | 13,831 | $ | 3,845 | ||||||
Less: net income attributable to participating securities | 666 | 992 | 677 | 239 | ||||||||||
Net income available to common shareholders | $ | 12,968 | $ | 14,992 | $ | 13,154 | $ | 3,606 | ||||||
Weighted average common shares(1) | 35,791,850 | 27,716,024 | 35,787,657 | 27,707,211 | ||||||||||
Basic and diluted net income per share | $ | 0.36 | $ | 0.54 | $ | 0.37 | $ | 0.13 | ||||||
(1) Excludes unvested shares granted under our share award plan, which shares are considered participating securities because they participate equally in earnings and losses with all of our other common shareholders. The weighted average number of unvested shares outstanding for the three months ended June 30, 2014 and 2013, was 1,839,413 and 1,834,847, respectively. The weighted average number of unvested shares outstanding for the six months ended June 30, 2014 and 2013, was 1,840,674 and 1,836,368, respectively. |
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
3. Inventories | ||||||||
Inventories consisted of the following: | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Nonfuel products | $ | 142,321 | $ | 150,600 | ||||
Fuel products | 45,093 | 48,601 | ||||||
Total inventories | $ | 187,414 | $ | 199,201 |
Acquisitions
Acquisitions | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Acquisitions | ' | ||||
Acquisitions | ' | ||||
4. Acquisitions | |||||
During the six months ended June 30, 2014, we acquired a travel center for $3,242, and we accounted for this transaction using the acquisition method of accounting, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their respective fair values as of the acquisition date. The following table summarizes the amounts assigned, based on their fair values, to the assets we acquired and liabilities we assumed in the business combination described above. | |||||
Cash | $ | 40 | |||
Inventories | 201 | ||||
Property and equipment | 3,074 | ||||
Other assets | 17 | ||||
Other liabilities | (90 | ) | |||
Total purchase price | $ | 3,242 | |||
We have included the results of this travel center in our consolidated financial statements from its date of acquisition. The pro forma impact of including the results of operations of this acquisition from the beginning of the period is not material to our condensed consolidated financial statements. | |||||
As of June 30, 2014, we had entered agreements to acquire two travel center properties for approximately $21,500 plus saleable inventory at cost. We completed these acquisitions during July and September 2014. | |||||
During the three months ended June 30, 2014 and 2013, and the six months ended June 30, 2014 and 2013, we incurred and charged to expense $149, $205, $759 and $320, respectively, of acquisition costs for the legal, due diligence and related activities associated with our consideration and completion of possible and actual acquisitions. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2014 | |
Debt | ' |
Debt | ' |
5. Debt | |
Senior Notes | |
On January 15, 2013, we issued at par $110,000 aggregate principal amount of our 8.25% Senior Notes, or the Senior Notes, in an underwritten public offering. The Senior Notes are our senior unsecured obligations. The indenture governing our Senior Notes does not limit the amount of indebtedness we may incur. We may issue additional debt from time to time. The indenture also requires that we file our reports under the Securities and Exchange Act of 1934, as amended, or the Exchange Act, with the indenture trustee within a prescribed time period. We did not maintain compliance with this covenant for the quarter ended June 30, 2014, but the filing of this Quarterly Report on Form 10-Q, or this Quarterly Report, cures this non-compliance. | |
We estimate the fair value of our Senior Notes was $113,432 based on the trading price (a Level 1 input) of our Senior Notes on June 30, 2014. | |
Revolving Credit Facility | |
Our $200,000 credit facility requires that we furnish our consolidated financial statements to our lenders within certain prescribed time periods. We received a waiver, until September 30, 2014, from these lenders of the requirement to deliver our financial statements for the period ended June 30, 2014. | |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||
6. Accumulated Other Comprehensive Income | |||||||||||
Accumulated other comprehensive income at June 30, 2014, consisted of the following: | |||||||||||
Foreign | Equity interest in | Accumulated | |||||||||
currency | investee’s | other | |||||||||
translation | unrealized gain | comprehensive | |||||||||
adjustment | (loss) on | income | |||||||||
investments | |||||||||||
Balance at December 31, 2013 | $ | 785 | $ | 49 | $ | 834 | |||||
Foreign currency translation adjustment, net of tax of $(8) | (22 | ) | — | (22 | ) | ||||||
Equity interest in investee’s unrealized loss on investments | — | 40 | 40 | ||||||||
Other comprehensive income (loss), net of tax | (22 | ) | 40 | 18 | |||||||
Balance at June 30, 2014 | $ | 763 | $ | 89 | $ | 852 |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Related Party Transactions | ' | |||||||||||||
Related Party Transactions | ' | |||||||||||||
7. Related Party Transactions | ||||||||||||||
Relationship with HPT | ||||||||||||||
HPT was our parent company until 2007 and is our principal landlord and our largest shareholder. We were created as a separate public company in 2007 as a result of a spin off from HPT. As of June 30, 2014, HPT owned 3,420,000 of our common shares, representing approximately 9.1% of our outstanding common shares. One of our Managing Directors, Mr. Barry Portnoy, is a managing trustee of HPT. Mr. Barry Portnoy’s son, Mr. Adam Portnoy, is also a managing trustee of HPT, and Mr. Barry Portnoy’s son-in-law, Mr. Ethan Bornstein, is an executive officer of HPT. Our other Managing Director, Mr. Thomas O’Brien, who is also our President and Chief Executive Officer, is a former executive officer of HPT. One of our Independent Directors, Mr. Arthur Koumantzelis, was an independent trustee of HPT prior to our spin-off from HPT. | ||||||||||||||
We have two leases with HPT, the TA Lease and the Petro Lease, pursuant to which we lease 185 properties from HPT. Our TA Lease is for 145 properties that we operate primarily under the TA brand. Our Petro Lease is for 40 properties that we operate under the Petro brand. The TA Lease expires on December 31, 2022. The Petro Lease expires on June 30, 2024, and may be extended by us for up to two additional periods of 15 years each. We have the right to use the “TA”, “TravelCenters of America” and other trademarks, which are owned by HPT, during the term of the TA Lease. We refer to the TA Lease and Petro Lease collectively as the HPT Leases. | ||||||||||||||
The HPT Leases are “triple net” leases that require us to pay all costs incurred in the operation of the leased properties, including costs related to personnel, utilities, acquiring inventories, providing services to customers, insurance, real estate and personal property taxes, environmental related expenses and ground lease payments at those properties at which HPT leases the property from the owner and subleases it to us. We also are required generally to indemnify HPT for certain environmental matters and for liabilities which arise during the terms of the leases from ownership or operation of the leased properties and, at lease expiration, we are required to pay an amount equal to an estimate of the cost of removing underground storage tanks on the leased properties. | ||||||||||||||
Effective January 2012 and 2013, we began to incur percentage rent payable to HPT under the TA Lease and the Petro Lease, respectively. In each case, the percentage rent equals 3% of increases in nonfuel gross revenues and 0.3% of increases in gross fuel revenues at the leased properties over base amounts. The increases in percentage rents attributable to fuel revenues are subject to a maximum each year calculated by reference to changes in the consumer price index. Also, HPT has agreed to waive payment of the first $2,500 of percentage rent that may become due under our Petro Lease; HPT waived $117 and $269 of percentage rent under our Petro Lease for the three and six months ended June 30, 2014, respectively, pursuant to that waiver; and through the second quarter of 2014 HPT has cumulatively waived $636 of the $2,500 of percentage rent to be waived. The total amount of percentage rent (net of the waived amount) that we incurred during the three and six months ended June 30, 2014 and 2013, was $729 and $1,622 and $593 and $1,282, respectively. | ||||||||||||||
Under the HPT Leases, we may request that HPT purchase approved amounts for renovations, improvements and equipment at the leased properties in return for increases in our minimum annual rent according to the following formula: the minimum rent per year will be increased by an amount equal to the amount paid by HPT multiplied by the greater of (i) 8.5% or (ii) a benchmark U.S. Treasury interest rate plus 3.5%. During the six months ended June 30, 2014 and 2013, pursuant to the terms of the HPT Leases, we sold to HPT $21,923 and $45,229, respectively, of improvements we previously made to properties leased from HPT, and, as a result, our minimum annual rent payable to HPT increased by approximately $1,863 and $3,844, respectively. At June 30, 2014, our property and equipment balance included $36,269 of improvements of the type that we typically request that HPT purchase for an increase in rent in the future; however, HPT is not obligated to purchase these improvements. In September 2014, we sold to HPT $20,038 of improvements for an increase in minimum annual rent payable to HPT of $1,703. | ||||||||||||||
The following table details amounts related to the HPT Leases and other leases that are reflected in real estate rent expense in our condensed consolidated statements of operations and comprehensive income (loss). | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Cash payments to HPT under the HPT Leases | $ | 55,603 | $ | 54,139 | $ | 110,749 | $ | 107,125 | ||||||
Change in accrued estimated percentage rent | (21 | ) | (82 | ) | 597 | 584 | ||||||||
Adjustments to recognize expense on a straight line basis | (559 | ) | (523 | ) | (900 | ) | (900 | ) | ||||||
Less sale-leaseback financing obligation amortization | (594 | ) | (512 | ) | (1,183 | ) | (1,022 | ) | ||||||
Less portion of rent payments recognized as interest expense | (1,471 | ) | (1,743 | ) | (2,941 | ) | (3,484 | ) | ||||||
Less deferred tenant improvements allowance amortization | (1,692 | ) | (1,692 | ) | (3,384 | ) | (3,384 | ) | ||||||
Amortization of deferred gain on sale-leaseback transactions | (96 | ) | (77 | ) | (192 | ) | (153 | ) | ||||||
Rent expense related to HPT Leases | 51,170 | 49,510 | 102,746 | 98,766 | ||||||||||
Rent paid to others (1) | 2,629 | 2,591 | 5,315 | 5,198 | ||||||||||
Adjustments to recognize expense on a straight line basis for other leases | (68 | ) | 3 | (126 | ) | 24 | ||||||||
Total real estate rent expense | $ | 53,731 | $ | 52,104 | $ | 107,935 | $ | 103,988 | ||||||
(1) Includes rent paid directly to HPT’s landlords under leases for properties we sublease from HPT as well as rent related to properties we lease from landlords other than HPT. | ||||||||||||||
The following table details amounts related to the HPT Leases that are included in our condensed consolidated balance sheets. | ||||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Current HPT Leases liabilities: | ||||||||||||||
Accrued rent | $ | 18,789 | $ | 18,041 | ||||||||||
Sale-leaseback financing obligation (1) | 2,437 | 2,358 | ||||||||||||
Straight line rent accrual (2) | 2,437 | 2,382 | ||||||||||||
Deferred gain on sale-leaseback transactions (3) | 385 | 385 | ||||||||||||
Deferred tenant improvements allowance (4) | 6,769 | 6,769 | ||||||||||||
Total Current HPT Leases liabilities | $ | 30,817 | $ | 29,935 | ||||||||||
Noncurrent HPT Leases liabilities: | ||||||||||||||
Deferred rent obligation (5) | $ | 150,000 | $ | 150,000 | ||||||||||
Sale-leaseback financing obligation (1) | 82,801 | 83,762 | ||||||||||||
Straight line rent accrual (2) | 51,638 | 52,901 | ||||||||||||
Deferred gain on sale-leaseback transactions (3) | 2,925 | 3,117 | ||||||||||||
Deferred tenant improvements allowance (4) | 50,762 | 54,146 | ||||||||||||
Total Noncurrent HPT Leases liabilities | $ | 338,126 | $ | 343,926 | ||||||||||
(1) Sale-leaseback Financing Obligation. GAAP governing the transactions related to our entering the TA Lease required us to recognize in our consolidated balance sheets the leased assets at thirteen of the properties previously owned by our predecessor that we now lease from HPT because we subleased more than a minor portion of those properties to third parties, and one property that did not qualify for operating lease treatment for other reasons. Accordingly, we recorded the leased assets at these properties at an amount equal to HPT’s recorded initial carrying amounts, which were equal to their fair values, and recognized an equal amount of liability that is presented as sale-leaseback financing obligation in our consolidated balance sheets. In addition, sales to HPT of improvements at these properties are accounted for as sale-leaseback financing transactions and these liabilities are increased by the amount of proceeds we receive from HPT. We recognize a portion of the total rent payments to HPT related to these assets as a reduction of the sale-leaseback financing obligation and a portion as interest expense in our consolidated statements of operations and comprehensive income. We determined the allocation of these rent payments to the liability and to interest expense using the effective interest method. The amounts allocated to interest expense were $1,471 and $1,743 for the three months ended June 30, 2014 and 2013, respectively, and $2,941 and $3,484 for the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||
During 2012 and 2013, subleases to franchisees of ours at five of these properties were terminated and we began operating these properties directly. The termination of these subleases qualified the properties for sale-leaseback accounting at which times we removed the related assets and liabilities from our consolidated balance sheet. See note (3) below for further discussion regarding the deferred gains of $2,850 we recognized as part of these sublease terminations. | ||||||||||||||
(2) Straight Line Rent Accrual. The TA Lease included scheduled rent increases over the first six years of the lease term, as do certain of the leases for properties we sublease from HPT, the rent for which we pay directly to HPT’s landlords. Also, under our leases with HPT, we are obligated to pay to HPT at lease expiration an amount equal to an estimate of the cost, calculated in accordance with GAAP, of removing the underground storage tanks we would have if we owned the underlying assets at those sites we lease from HPT. We recognize the effects of scheduled rent increases and the future payment to HPT for the estimated cost of removing underground storage tanks in real estate rent expense over the lease terms on a straight line basis, with offsetting entries to this accrual balance. | ||||||||||||||
(3) Deferred Gain on Sale-Leaseback Transactions. This gain arose from our 2012 and 2013 terminations of subleases to franchisees for five properties we lease from HPT, which qualified these properties for sale-leaseback accounting and required us to remove the related assets and liabilities from our consolidated balance sheets, as further described in note (1) above, and from the sales to HPT of certain assets at the five properties we lease from HPT that we continue to sublease to franchisees. Under GAAP, the gain or loss from the sale portion of a sale-leaseback transaction is deferred and amortized into our real estate rent expense on a straight line basis over the then remaining term of the lease. | ||||||||||||||
(4) Deferred Tenant Improvements Allowance. HPT committed to fund up to $125,000 of capital projects at the properties we lease under the TA Lease without an increase in rent payable by us, which amount HPT had fully funded by September 30, 2010, net of discounting to reflect our accelerated receipt of those funds. In connection with this commitment, we recognized a liability for the rent deemed to be related to this tenant improvements allowance. This deferred tenant improvements allowance was initially recorded at an amount equal to the leasehold improvements receivable we recognized for the discounted value of the then expected future amounts to be received from HPT, based upon our then expected timing of receipt of those payments. We amortize the deferred tenant improvements allowance on a straight line basis over the term of the TA Lease as a reduction of real estate rent expense. | ||||||||||||||
(5) Deferred Rent Obligation. Pursuant to a rent deferral agreement with HPT, through December 31, 2010, we deferred a total of $150,000 of rent payable to HPT. The deferred rent obligation is payable in two installments, $107,085 in December 2022 and $42,915 in June 2024. This obligation does not bear interest, unless certain events of default or other events occur, including a change of control of us. | ||||||||||||||
On August 13, 2013, the travel center located in Roanoke, VA that we leased from HPT under the TA Lease was taken by eminent domain proceedings brought by the Virginia Department of Transportation, or VDOT, in connection with planned highway construction. The TA Lease provides that the annual rent payable by us is reduced by 8.5% of the amount of the proceeds HPT receives from the taking or, at HPT’s option, the fair market value rent of the property on the commencement date of the TA Lease. In January 2014, HPT received proceeds from VDOT of $6,178, which is a substantial portion of VDOT’s estimate of the value of the property, and as a result our annual rent under the TA Lease was reduced by $525 effective January 6, 2014. We and HPT have challenged VDOT’s estimate of this property’s value and expect that the ultimate resolution of this matter will take a prolonged period of time. HPT entered a lease agreement with VDOT to lease for $40 per month this property through August 31, 2014, which lease term was recently extended through November 15, 2014. We entered into a sublease for this property with HPT and, we plan to continue operating it as a travel center through November 15, 2014. Under the terms of the TA Lease, we are responsible to pay the rent to VDOT under the lease agreement. | ||||||||||||||
Relationship with RMR | ||||||||||||||
Reit Management & Research LLC, or RMR, provides business management and shared services to us pursuant to a business management and shared services agreement, or our business management agreement, and building management services to us related to our headquarters office building, or our property management agreement. One of our Managing Directors, Mr. Barry Portnoy, is Chairman, majority owner and an employee of RMR. Mr. Barry Portnoy’s son, Mr. Adam Portnoy, is an owner of RMR and serves as President, Chief Executive Officer and a director of RMR. Our other Managing Director, Mr. Thomas O’Brien, who is also our President and Chief Executive Officer, Mr. Andrew Rebholz, our Executive Vice President, Chief Financial Officer and Treasurer, and Mr. Mark Young, our Executive Vice President and General Counsel, are officers of RMR. RMR provides management services to HPT and HPT’s executive officers are officers of RMR. Two of our Independent Directors also serve as independent directors or independent trustees of other public companies to which RMR or its affiliates provide management services. Mr. Barry Portnoy serves as a managing director or managing trustee of a majority of the public companies to which RMR or its affiliates provide management services and Mr. Adam Portnoy serves as a managing trustee of a majority of those companies. In addition, officers of RMR serve as officers of those companies. | ||||||||||||||
Pursuant to our business management agreement and property management agreement with RMR, we recognized aggregate fees of $3,148 and $2,899 for the three months ended June 30, 2014 and 2013, respectively, and $6,002 and $5,416 for the six months ended June 30, 2014 and 2013, respectively. These amounts are included in selling, general and administrative expenses in our condensed consolidated statements of operations and comprehensive income (loss). | ||||||||||||||
Relationship with AIC | ||||||||||||||
We, RMR and five other companies to which RMR provides management services each owned 14.3% of Affiliates Insurance Company, or AIC, an Indiana insurance company as of June 30, 2014. Each of our Directors and most of the trustees and directors of the other AIC shareholders currently serve on the board of directors of AIC. RMR provides management and administrative services to AIC pursuant to a management and administrative services agreement with AIC. As of June 30, 2014, we had invested $6,054 in AIC since its formation in 2008. Although we own less than 20% of AIC, we use the equity method to account for this investment because we believe that we have significant influence over AIC as all of our Directors are also directors of AIC. Our investment in AIC had a carrying value of $6,785 and $5,913 as of June 30, 2014 and December 31, 2013, respectively, which amounts are included in other noncurrent assets on our consolidated balance sheets. We recognized income of $104 and $79 for the three months ended June 30, 2014 and 2013, respectively, and $7 and $155 for the six months ended June 30, 2014 and 2013, respectively, related to our investment in AIC. In June 2014, we and the other shareholders of AIC renewed our participation in an insurance program arranged by AIC. In connection with the renewal, we purchased a one-year property insurance policy providing $500,000 of coverage, with respect to which AIC is a reinsurer of certain coverage amounts. We paid AIC a premium, including taxes and fees, of approximately $1,601 in connection with that policy, which amount may be adjusted from time to time as we acquire or dispose of properties that are included in the policy. We periodically consider the possibilities for expanding our insurance relationships with AIC to include other types of insurance and may in the future participate in additional insurance offerings AIC may provide or arrange. We may invest additional amounts in AIC in the future if the expansion of this insurance business requires additional capital, but we are not obligated to do so. By participating in this insurance business with RMR and the other companies to which RMR provides management services, we expect that we may benefit financially by reducing our insurance expenses and by realizing our pro rata share of any profits of this insurance business. | ||||||||||||||
On March 25, 2014, as a result of the removal, without cause, of all of the trustees of Equity CommonWealth (formerly known as CommonWealth REIT), or EQC, EQC underwent a change in control, as defined in the shareholders agreement among us, the other shareholders of AIC, and AIC. As a result of that change in control and in accordance with the terms of the shareholders agreement, on May 9, 2014, we and the other non-EQC shareholders purchased pro rata the AIC shares EQC owned. Pursuant to that purchase, we purchased 2,857 AIC shares from EQC for $825. Following these purchases, we and the six other remaining shareholders each owned approximately 14.3% of AIC. | ||||||||||||||
Directors’ and Officers’ Liability Insurance | ||||||||||||||
In September 2014, we purchased a two year combined directors’ and officers’ insurance policy with HPT, RMR and four other companies managed by RMR that provides $10,000 in aggregate primary coverage, including certain errors and omission coverage. At that time, we also purchased separate additional one year directors’ and officers’ liability insurance policies that provide $20,000 of aggregate excess coverage plus $5,000 of excess non-indemnifiable coverage. The total premium payable by us for these policies was approximately $351. | ||||||||||||||
Relationship with PTP | ||||||||||||||
Petro Travel Plaza Holdings LLC, or PTP, is a joint venture between us and Tejon Development Corporation, or Tejon, that owns two travel centers and two convenience stores in California. We own a 40% interest in PTP and operate the two travel centers and two convenience stores PTP owns for which we receive management and accounting fees. The carrying value of our investment in PTP as of June 30, 2014 and December 31, 2013, was $18,604 and $17,672, respectively. We recognized management and accounting fee income of $200 for each of the three month periods ended June 30, 2014 and 2013, and $400 for each of the six month periods ended June 30, 2014 and 2013. At June 30, 2014, and December 31, 2013, we had net payables to PTP of $2,495 and $1,147, respectively. We recognized income of $581 and $644 during the three months ended June 30, 2014 and 2013, respectively, and $932 and $1,004 during the six months ended June 30, 2014 and 2013, respectively, as our share of PTP’s net income. | ||||||||||||||
Summarized financial information of PTP | ||||||||||||||
The following table sets forth the aggregate summarized financial information of PTP and does not represent the amounts we have included in our consolidated financial statements in connection with our investment in PTP. | ||||||||||||||
Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Total revenues | $ | 54,658 | $ | 55,364 | ||||||||||
Total cost of sales (excluding depreciation) | $ | 43,604 | $ | 44,712 | ||||||||||
Operating income | $ | 2,694 | $ | 2,693 | ||||||||||
Interest expense, net | $ | (243 | ) | $ | (299 | ) | ||||||||
Net income | $ | 2,451 | $ | 2,394 |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies | |
Environmental Matters | |
Extensive environmental laws regulate our operations and properties. These laws may require us to investigate and clean up hazardous substances, including petroleum or natural gas products, released at our owned and leased properties. Governmental entities or third parties may hold us liable for property damage and personal injuries, and for investigation, remediation and monitoring costs incurred in connection with any contamination and regulatory compliance. We use both underground storage tanks and above ground storage tanks to store petroleum products, natural gas and waste at our locations. We must comply with environmental laws regarding tank construction, integrity testing, leak detection and monitoring, overfill and spill control, release reporting and financial assurance for corrective action in the event of a release. At some locations we must also comply with environmental laws relative to vapor recovery or discharges to water. Under the terms of our leases, we generally have agreed to indemnify HPT for any environmental liabilities related to properties that we lease from HPT and we are required to pay all environmental related expenses incurred in the operation of the properties. | |
From time to time we have received, and in the future likely will receive, notices of alleged violations of environmental laws or otherwise have become or will become aware of the need to undertake corrective actions to comply with environmental laws at our locations. Investigatory and remedial actions were, and regularly are, undertaken with respect to releases of hazardous substances at our locations. In some cases we received, and may receive in the future, contributions to partially offset our environmental costs from insurers, from state funds established for environmental clean up associated with the sale of petroleum products or from indemnitors who agreed to fund certain environmental related costs at locations purchased from those indemnitors. To the extent we incur material amounts for environmental matters for which we do not receive or expect to receive insurance or other third party reimbursement or for which we have not previously recorded a reserve, our operating results may be materially adversely affected. In addition, to the extent we fail to comply with environmental laws and regulations, or we become subject to costs and requirements not similarly experienced by our competitors, our competitive position may be harmed. | |
At June 30, 2014, we had a gross accrued liability of $5,533 for environmental matters as well as a receivable for expected recoveries of certain of these estimated future expenditures of $1,518, resulting in an estimated net amount of $4,015 that we expect to fund in the future. Accrued liabilities related to environmental matters are recorded on an undiscounted basis due to the uncertainty associated with the timing of the related future payments. We cannot precisely know the ultimate costs we will incur in connection with currently known or future potential environmental related violations, corrective actions, investigation and remediation; however, based on our current knowledge we do not expect that our net costs for such matters to be incurred at our locations, individually or in the aggregate, would be material to our financial condition or results of operations. | |
In February 2014, we reached an agreement with the California State Water Resources Control Board, or the State Water Board, to settle certain claims the State Water Board had filed against us in California Superior Court in 2010 relating to alleged violations of underground storage tank laws and regulations for a cash payment of $1,800; suspended penalties of $1,000 that may become payable by us in the future if, prior to March 2019, we fail to comply with specified underground storage tank laws and regulations; and our agreement to invest, prior to March 2018, up to $2,000 of verified costs that are directly related to the development and implementation of a comprehensive California Enhanced Environmental Compliance Program for the underground storage tank systems at all of our California facilities that is above and beyond minimum requirements of California law and regulations related to underground storage tank systems. To the extent that we do not incur the full $2,000 of eligible environmental compliance costs by March 2018, the difference between the amount we incur and $2,000 will be payable to the State Water Board. The settlement, which was approved by the Superior Court on February 20, 2014, also included injunctive relief provisions requiring that we comply with certain California environmental laws and regulations applicable to underground storage tank systems. We made the $1,800 cash payment during the first quarter of 2014. As of June 30, 2014, we have a liability of $1,708 recorded with respect to this matter, which amount is included in the gross accrued liability for environmental matters referenced above. We believe that the probability of triggering any portion of the $1,000 of suspended penalties is remote and have not recognized a loss or a liability for that amount, but it is possible that such events will occur and some portion or all of the $1,000 may become due and payable and would be recognized as an expense at the time of the future event or events. | |
We have insurance of up to $10,000 per incident and up to $40,000 in the aggregate for certain environmental liabilities, subject, in each case, to certain limitations and deductibles. However, we can provide no assurance that we will be able to maintain similar environmental insurance coverage in the future on acceptable terms. | |
It is impossible to predict the ultimate effect changing circumstances and changing environmental laws may have on us in the future or the ultimate outcome of matters currently pending. We cannot be certain that contamination presently unknown to us does not exist at our sites, or that material liability will not be imposed on us in the future. If we discover additional environmental issues, or if government agencies impose additional environmental requirements, increased environmental compliance or remediation expenditures may be required, which could have a material adverse effect on us. In addition, legislation and regulation regarding climate change, including greenhouse gas emissions and other environmental matters, and market reaction to any such legislation or regulation or to climate change concerns, may decrease the demand for our major product, diesel fuel, may require us to expend significant amounts and may negatively impact our business. For instance, federal and state governmental requirements addressing emissions from trucks and other motor vehicles, such as the U.S. Environmental Protection Agency’s gasoline and diesel sulfur control requirements that limit the concentration of sulfur in motor vehicle gasoline and diesel fuel, as well as President Obama’s February 2014 order that his administration develop and implement new fuel efficiency standards for medium and heavy duty commercial trucks by March 2016, has caused us to add certain services and provide certain products to our customers at a cost to us and may decrease the demand for our fuel products and negatively impact our business. Further, legislation and regulations that limit carbon emissions also may cause our energy costs at our locations to increase. | |
Legal Proceedings | |
Beginning in December 2006, a series of class action lawsuits was filed against numerous companies in the petroleum industry, including our predecessor and our subsidiaries, in U.S. district courts in over 20 states. Major petroleum refiners and retailers were named as defendants in one or more of these lawsuits. The plaintiffs in the lawsuits generally alleged that they are retail purchasers who purchased motor fuel at temperatures greater than 60 degrees Fahrenheit at the time of sale. One theory alleged that the plaintiffs purchased smaller amounts of motor fuel than the amount for which defendants charged them because the defendants measured the amount of motor fuel they delivered by volumes which, at higher temperatures, contain less energy. A second theory alleged that fuel taxes are calculated in temperature adjusted 60 degree gallons and are collected by governmental agencies from suppliers and wholesalers, who are reimbursed in the amount of the tax by the defendant retailers before the fuel is sold to consumers. These “tax” cases allege that, when the fuel is subsequently sold to consumers at temperatures above 60 degrees, the retailers sell a greater volume of fuel than the amount on which they paid tax, and therefore reap unjust benefit because the customers pay more tax than the retailer pays. A third theory alleged that all purchasers of fuel at any temperature are harmed because the defendants do not use equipment that adjusts for temperature or disclose the temperature of fuel being sold, and thereby deprive customers of information they allegedly require to make an informed purchasing decision. All of these cases were consolidated in the U.S. District Court for the District of Kansas pursuant to multi-district litigation procedures. On May 28, 2010, that Court ruled that, with respect to two cases originally filed in the U.S. District Court for the District of Kansas, it would grant plaintiffs’ motion to certify a class of plaintiffs seeking injunctive relief (implementation of fuel temperature equipment and/or posting of notices regarding the effect of temperature on fuel). On January 19, 2012, the Court amended its prior ruling, and certified a class with respect to plaintiffs’ claims for damages as well. A TA entity was named in one of those two Kansas cases, but the Court ruled that the named plaintiffs were not sufficient to represent a class as to TA. TA was thereafter dismissed from the Kansas case. Several defendants in the Kansas cases, including major petroleum refiners, have entered into multi-state settlements. Following a September 2012 trial against the remaining defendants in the Kansas cases, the jury returned a unanimous verdict in favor of those Kansas defendants, and the judge likewise ruled in the Kansas defendants’ favor on the sole non-jury claim. In early 2013, the Court announced its intention to remand three cases originally filed in federal district courts in California back to their original courts. On April 9, 2013, the Court granted plaintiffs’ motion for class certification in connection with the California claims in the California cases. On August 14, 2013, the Court granted summary judgment for the defendants with respect to all California claims in the California cases, and in February 2014, the U.S. District Court for the Northern District of California entered judgment in favor of the defendants with respect to those claims. The plaintiffs in the California cases have all dismissed their non-California claims against TA, except for one individual plaintiff, who continues to assert claims based on purchases of fuel in states other than California. In January 2014, TA was dismissed with prejudice in all the non-California cases in all states in which it remained a defendant at that time. Therefore, the only case in which TA remains a defendant is the case in which one remaining plaintiff is pursuing non-California claims. We believe there are substantial factual and legal defenses to the allegations made in this remaining case. While we do not expect that we will incur a material loss in this case, we cannot estimate our ultimate exposure to loss or liability, if any, related to this lawsuit. | |
On April 6, 2009, five independent truck stop owners, who are plaintiffs in a purported class action suit against Comdata Network, Inc., or Comdata, in the U.S. District Court for the Eastern District of Pennsylvania, filed a motion to amend their complaint to add us as a defendant, which was allowed on March 25, 2010. The amended complaint also added as defendants Ceridian Corporation, Pilot Travel Centers LLC and Love’s Travel Stops & Country Stores, Inc. Comdata markets fuel cards which are used for payments by trucking companies at truck stops. The amended complaint alleged antitrust violations arising out of Comdata’s contractual relationships with truck stops in connection with its fuel cards. On February 28, 2014, we entered into a Definitive Master Class Settlement Agreement with the plaintiffs, or the settlement agreement. The Court approved the settlement agreement on July 14, 2014. The settlement agreement provides for the co-defendants, including us, to pay an aggregate of $130,000 to a settlement fund for class members, including $10,000 from us, and the dismissal with prejudice of the litigation and the unconditional release of all claims that class members brought, or could have brought, against us and the other settling co-defendants with respect to the litigation and related actions. We recognized a $10,000 loss in connection with this matter in December 2013 and made the cash payment in March 2014. | |
In addition to the legal proceedings referenced above, we are routinely involved in various other legal and administrative proceedings, including tax audits, incidental to the ordinary course of our business, none of which we expect, individually or in the aggregate, to have a material adverse effect on our business, financial condition, results of operations or cash flows. | |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
9. Income Taxes | |
The income tax provision for the six months ended June 30, 2014, reflects an effective tax rate of 41.8%, which is our current estimated annual effective tax rate for the year ending December 31, 2014. Our current estimated annual effective tax rate is higher than the federal statutory tax rate primarily due to state income taxes and certain items that are not deductible for income tax purposes. | |
For the six months ended June 30, 2013, our income tax provision differed from the amount of benefit expected to be calculated at statutory rates primarily due to the impact of our valuation allowance, which was reversed in the fourth quarter of 2013. For the six months ended June 30, 2013, we included in tax expense $372 for certain state taxes on operating income that were payable without regard to our tax loss carryforwards. During the six months ended June 30, 2013, tax expense also included $180 related to a noncash deferred liability that arose from the amortization of indefinite lived intangible assets for tax purposes but not for GAAP purposes that were unavailable to offset our deferred tax assets while we maintained a valuation allowance against our net deferred tax assets. | |
Basis_of_Presentation_Business1
Basis of Presentation, Business Description and Organization (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation, Business Description and Organization | ' |
Reclassifications | ' |
Certain prior year amounts have been reclassified in the Condensed Consolidated Statements of Cash Flows to be consistent with the current year presentation. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers, which establishes a comprehensive revenue recognition standard under GAAP for virtually all industries. The new standard will apply for annual periods beginning after December 15, 2016, including interim periods therein. Early adoption is prohibited. We have not yet determined the effects, if any, adoption of this update may have on our consolidated financial statements. | |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Earnings Per Share | ' | |||||||||||||
Schedule of reconciliation from net income to the net income available to common shareholders and the related earnings per share | ' | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Net income, as reported | $ | 13,634 | $ | 15,984 | $ | 13,831 | $ | 3,845 | ||||||
Less: net income attributable to participating securities | 666 | 992 | 677 | 239 | ||||||||||
Net income available to common shareholders | $ | 12,968 | $ | 14,992 | $ | 13,154 | $ | 3,606 | ||||||
Weighted average common shares(1) | 35,791,850 | 27,716,024 | 35,787,657 | 27,707,211 | ||||||||||
Basic and diluted net income per share | $ | 0.36 | $ | 0.54 | $ | 0.37 | $ | 0.13 | ||||||
(1) Excludes unvested shares granted under our share award plan, which shares are considered participating securities because they participate equally in earnings and losses with all of our other common shareholders. The weighted average number of unvested shares outstanding for the three months ended June 30, 2014 and 2013, was 1,839,413 and 1,834,847, respectively. The weighted average number of unvested shares outstanding for the six months ended June 30, 2014 and 2013, was 1,840,674 and 1,836,368, respectively. |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Nonfuel products | $ | 142,321 | $ | 150,600 | ||||
Fuel products | 45,093 | 48,601 | ||||||
Total inventories | $ | 187,414 | $ | 199,201 |
Acquisitions_Tables
Acquisitions (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Acquisitions | ' | ||||
Summary of the amounts assigned, based on their fair values, to the assets acquired and liabilities assumed in the business combinations | ' | ||||
Cash | $ | 40 | |||
Inventories | 201 | ||||
Property and equipment | 3,074 | ||||
Other assets | 17 | ||||
Other liabilities | (90 | ) | |||
Total purchase price | $ | 3,242 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||
Schedule of accumulated other comprehensive income | ' | ||||||||||
Foreign | Equity interest in | Accumulated | |||||||||
currency | investee’s | other | |||||||||
translation | unrealized gain | comprehensive | |||||||||
adjustment | (loss) on | income | |||||||||
investments | |||||||||||
Balance at December 31, 2013 | $ | 785 | $ | 49 | $ | 834 | |||||
Foreign currency translation adjustment, net of tax of $(8) | (22 | ) | — | (22 | ) | ||||||
Equity interest in investee’s unrealized loss on investments | — | 40 | 40 | ||||||||
Other comprehensive income (loss), net of tax | (22 | ) | 40 | 18 | |||||||
Balance at June 30, 2014 | $ | 763 | $ | 89 | $ | 852 |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Related Party Transactions | ' | |||||||||||||
Schedule of details amounts related to the HPT Leases and other leases that are reflected in real estate rent expense in our condensed consolidated statements of operations and comprehensive income (loss) | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Cash payments to HPT under the HPT Leases | $ | 55,603 | $ | 54,139 | $ | 110,749 | $ | 107,125 | ||||||
Change in accrued estimated percentage rent | (21 | ) | (82 | ) | 597 | 584 | ||||||||
Adjustments to recognize expense on a straight line basis | (559 | ) | (523 | ) | (900 | ) | (900 | ) | ||||||
Less sale-leaseback financing obligation amortization | (594 | ) | (512 | ) | (1,183 | ) | (1,022 | ) | ||||||
Less portion of rent payments recognized as interest expense | (1,471 | ) | (1,743 | ) | (2,941 | ) | (3,484 | ) | ||||||
Less deferred tenant improvements allowance amortization | (1,692 | ) | (1,692 | ) | (3,384 | ) | (3,384 | ) | ||||||
Amortization of deferred gain on sale-leaseback transactions | (96 | ) | (77 | ) | (192 | ) | (153 | ) | ||||||
Rent expense related to HPT Leases | 51,170 | 49,510 | 102,746 | 98,766 | ||||||||||
Rent paid to others (1) | 2,629 | 2,591 | 5,315 | 5,198 | ||||||||||
Adjustments to recognize expense on a straight line basis for other leases | (68 | ) | 3 | (126 | ) | 24 | ||||||||
Total real estate rent expense | $ | 53,731 | $ | 52,104 | $ | 107,935 | $ | 103,988 | ||||||
(1) Includes rent paid directly to HPT’s landlords under leases for properties we sublease from HPT as well as rent related to properties we lease from landlords other than HPT. | ||||||||||||||
Schedule of details amounts related to the HPT Leases | ' | |||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Current HPT Leases liabilities: | ||||||||||||||
Accrued rent | $ | 18,789 | $ | 18,041 | ||||||||||
Sale-leaseback financing obligation (1) | 2,437 | 2,358 | ||||||||||||
Straight line rent accrual (2) | 2,437 | 2,382 | ||||||||||||
Deferred gain on sale-leaseback transactions (3) | 385 | 385 | ||||||||||||
Deferred tenant improvements allowance (4) | 6,769 | 6,769 | ||||||||||||
Total Current HPT Leases liabilities | $ | 30,817 | $ | 29,935 | ||||||||||
Noncurrent HPT Leases liabilities: | ||||||||||||||
Deferred rent obligation (5) | $ | 150,000 | $ | 150,000 | ||||||||||
Sale-leaseback financing obligation (1) | 82,801 | 83,762 | ||||||||||||
Straight line rent accrual (2) | 51,638 | 52,901 | ||||||||||||
Deferred gain on sale-leaseback transactions (3) | 2,925 | 3,117 | ||||||||||||
Deferred tenant improvements allowance (4) | 50,762 | 54,146 | ||||||||||||
Total Noncurrent HPT Leases liabilities | $ | 338,126 | $ | 343,926 | ||||||||||
(1) Sale-leaseback Financing Obligation. GAAP governing the transactions related to our entering the TA Lease required us to recognize in our consolidated balance sheets the leased assets at thirteen of the properties previously owned by our predecessor that we now lease from HPT because we subleased more than a minor portion of those properties to third parties, and one property that did not qualify for operating lease treatment for other reasons. Accordingly, we recorded the leased assets at these properties at an amount equal to HPT’s recorded initial carrying amounts, which were equal to their fair values, and recognized an equal amount of liability that is presented as sale-leaseback financing obligation in our consolidated balance sheets. In addition, sales to HPT of improvements at these properties are accounted for as sale-leaseback financing transactions and these liabilities are increased by the amount of proceeds we receive from HPT. We recognize a portion of the total rent payments to HPT related to these assets as a reduction of the sale-leaseback financing obligation and a portion as interest expense in our consolidated statements of operations and comprehensive income. We determined the allocation of these rent payments to the liability and to interest expense using the effective interest method. The amounts allocated to interest expense were $1,471 and $1,743 for the three months ended June 30, 2014 and 2013, respectively, and $2,941 and $3,484 for the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||
During 2012 and 2013, subleases to franchisees of ours at five of these properties were terminated and we began operating these properties directly. The termination of these subleases qualified the properties for sale-leaseback accounting at which times we removed the related assets and liabilities from our consolidated balance sheet. See note (3) below for further discussion regarding the deferred gains of $2,850 we recognized as part of these sublease terminations. | ||||||||||||||
(2) Straight Line Rent Accrual. The TA Lease included scheduled rent increases over the first six years of the lease term, as do certain of the leases for properties we sublease from HPT, the rent for which we pay directly to HPT’s landlords. Also, under our leases with HPT, we are obligated to pay to HPT at lease expiration an amount equal to an estimate of the cost, calculated in accordance with GAAP, of removing the underground storage tanks we would have if we owned the underlying assets at those sites we lease from HPT. We recognize the effects of scheduled rent increases and the future payment to HPT for the estimated cost of removing underground storage tanks in real estate rent expense over the lease terms on a straight line basis, with offsetting entries to this accrual balance. | ||||||||||||||
(3) Deferred Gain on Sale-Leaseback Transactions. This gain arose from our 2012 and 2013 terminations of subleases to franchisees for five properties we lease from HPT, which qualified these properties for sale-leaseback accounting and required us to remove the related assets and liabilities from our consolidated balance sheets, as further described in note (1) above, and from the sales to HPT of certain assets at the five properties we lease from HPT that we continue to sublease to franchisees. Under GAAP, the gain or loss from the sale portion of a sale-leaseback transaction is deferred and amortized into our real estate rent expense on a straight line basis over the then remaining term of the lease. | ||||||||||||||
(4) Deferred Tenant Improvements Allowance. HPT committed to fund up to $125,000 of capital projects at the properties we lease under the TA Lease without an increase in rent payable by us, which amount HPT had fully funded by September 30, 2010, net of discounting to reflect our accelerated receipt of those funds. In connection with this commitment, we recognized a liability for the rent deemed to be related to this tenant improvements allowance. This deferred tenant improvements allowance was initially recorded at an amount equal to the leasehold improvements receivable we recognized for the discounted value of the then expected future amounts to be received from HPT, based upon our then expected timing of receipt of those payments. We amortize the deferred tenant improvements allowance on a straight line basis over the term of the TA Lease as a reduction of real estate rent expense. | ||||||||||||||
(5) Deferred Rent Obligation. Pursuant to a rent deferral agreement with HPT, through December 31, 2010, we deferred a total of $150,000 of rent payable to HPT. The deferred rent obligation is payable in two installments, $107,085 in December 2022 and $42,915 in June 2024. This obligation does not bear interest, unless certain events of default or other events occur, including a change of control of us. | ||||||||||||||
Summary of financial information | ' | |||||||||||||
Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Total revenues | $ | 54,658 | $ | 55,364 | ||||||||||
Total cost of sales (excluding depreciation) | $ | 43,604 | $ | 44,712 | ||||||||||
Operating income | $ | 2,694 | $ | 2,693 | ||||||||||
Interest expense, net | $ | (243 | ) | $ | (299 | ) | ||||||||
Net income | $ | 2,451 | $ | 2,394 |
Basis_of_Presentation_Business2
Basis of Presentation, Business Description and Organization (Details) | 6 Months Ended |
Jun. 30, 2014 | |
item | |
Basis of presentation, business description and organization | ' |
Number of operating segments | 1 |
Number of reportable segments | 1 |
HPT | ' |
Basis of presentation, business description and organization | ' |
Number of sites under leases | 185 |
Travel centers | ' |
Basis of presentation, business description and organization | ' |
Number of locations | 248 |
Number of states in which the entity operates | 43 |
Number of locations owned | 34 |
Number of sites under leases | 189 |
Travel centers | Minimum | ' |
Basis of presentation, business description and organization | ' |
Area of property | 25 |
Travel centers | HPT | ' |
Basis of presentation, business description and organization | ' |
Number of sites under leases | 184 |
Travel centers | Travel Centers of America brand | ' |
Basis of presentation, business description and organization | ' |
Number of locations | 173 |
Travel centers | Petro Stopping Center brand | ' |
Basis of presentation, business description and organization | ' |
Number of locations | 75 |
Travel centers | Company operated sites | ' |
Basis of presentation, business description and organization | ' |
Number of locations | 218 |
Travel centers | Franchisee operated sites | ' |
Basis of presentation, business description and organization | ' |
Number of locations | 30 |
Travel centers | Franchised sites | ' |
Basis of presentation, business description and organization | ' |
Number of locations owned and operated | 25 |
Travel centers | Franchisee subleased sites | HPT | ' |
Basis of presentation, business description and organization | ' |
Number of locations | 5 |
Convenience stores | ' |
Basis of presentation, business description and organization | ' |
Area of property | 5,000 |
Number of fueling stations | 10 |
Number of locations | 34 |
Number of states in which the entity operates | 4 |
Number of locations owned | 27 |
Number of sites under leases | 7 |
Convenience stores | HPT | ' |
Basis of presentation, business description and organization | ' |
Number of sites under leases | 1 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Computation of Basic and Diluted Earnings Per Share | ' | ' | ' | ' |
Net income, as reported | $13,634 | $15,984 | $13,831 | $3,845 |
Less: net income attributable to participating securities | 666 | 992 | 677 | 239 |
Net income available to common shareholders | $12,968 | $14,992 | $13,154 | $3,606 |
Weighted average common shares | 35,791,850 | 27,716,024 | 35,787,657 | 27,707,211 |
Basic and diluted net income per share | $0.36 | $0.54 | $0.37 | $0.13 |
Number of unvested participating shares | 1,839,413 | 1,834,847 | 1,840,674 | 1,836,368 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Nonfuel products | $142,321 | $150,600 |
Fuel products | 45,093 | 48,601 |
Total inventories | $187,414 | $199,201 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Summary of the amounts assigned, based on their fair values, to the assets acquired and liabilities assumed in the business combinations | ' | ' | ' | ' |
Cash | $40 | ' | $40 | ' |
Inventories | 201 | ' | 201 | ' |
Property and equipment | 3,074 | ' | 3,074 | ' |
Other assets | 17 | ' | 17 | ' |
Other liabilities | -90 | ' | -90 | ' |
Total purchase price | 3,242 | ' | 3,242 | ' |
Acquisition costs | 149 | 205 | 759 | 320 |
Travel centers | ' | ' | ' | ' |
Acquisitions | ' | ' | ' | ' |
Purchase price paid | ' | ' | 3,242 | ' |
Two travel centers | Pending Acquisition | ' | ' | ' | ' |
Summary of the amounts assigned, based on their fair values, to the assets acquired and liabilities assumed in the business combinations | ' | ' | ' | ' |
Number of travel center properties acquired as per the agreement | ' | ' | 2 | ' |
Cost of acquisition | ' | ' | $21,500 | ' |
Debt_Details
Debt (Details) (USD $) | Jun. 30, 2014 | Jan. 15, 2013 |
In Thousands, unless otherwise specified | ||
Senior Notes | ' | ' |
Debt | ' | ' |
Aggregate principal amount | ' | $110,000 |
Interest rate (as a percent) | ' | 8.25% |
Fair value of debt instrument | 113,432 | ' |
Credit facility | ' | ' |
Debt | ' | ' |
Maximum borrowing capacity | $200,000 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | $834 | ' |
Foreign currency translation adjustment, net of tax of $(8) | 170 | -199 | -22 | -325 |
Equity interest in investee's unrealized loss on investments | 21 | -73 | 40 | -81 |
Other comprehensive income (loss), net of tax | 191 | -272 | 18 | -406 |
Balance at the end of the period | 852 | ' | 852 | ' |
Foreign currency translation adjustment, taxes | 83 | -85 | -8 | -138 |
Foreign currency translation adjustment | ' | ' | ' | ' |
Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 785 | ' |
Foreign currency translation adjustment, net of tax of $(8) | ' | ' | -22 | ' |
Other comprehensive income (loss), net of tax | ' | ' | -22 | ' |
Balance at the end of the period | 763 | ' | 763 | ' |
Equity interest in investee's unrealized gain (loss) on investments | ' | ' | ' | ' |
Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 49 | ' |
Equity interest in investee's unrealized loss on investments | ' | ' | 40 | ' |
Other comprehensive income (loss), net of tax | ' | ' | 40 | ' |
Balance at the end of the period | $89 | ' | $89 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 24 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 06, 2014 | Jan. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2010 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 9-May-14 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | HPT | AIC | AIC | AIC | AIC | AIC | AIC | AIC | RMR | PTP | PTP | PTP | PTP | PTP | ||||||
installment | installment | item | Subsequent event | Deferred rent obligation payable in December 2022 | Deferred rent obligation payable in June 2024 | TA Lease | TA Lease | TA Lease | TA Lease | TA Lease | TA Lease | TA Lease | TA Lease | Petro Lease | Petro Lease | Petro Lease | item | item | item | Subsequent event | item | item | ||||||||||||||||
leasedsite | leasedsite | leasedsite | leasedsite | property | leasedsite | leasedsite | Maximum | item | travelcenter | travelcenter | ||||||||||||||||||||||||||||
lease | lease | property | option | |||||||||||||||||||||||||||||||||||
Related Party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common shares owned | ' | ' | ' | ' | ' | 3,420,000 | ' | 3,420,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding common shares owned | ' | ' | ' | ' | ' | 9.10% | ' | 9.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of leases | ' | ' | ' | ' | ' | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties under lease | ' | ' | ' | ' | ' | 185 | ' | 185 | ' | ' | ' | ' | ' | ' | ' | ' | 145 | ' | 145 | ' | ' | ' | 40 | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of renewal options available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of renewal option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of non-fuel revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | 3.00% | ' | ' | ' | 3.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of fuel revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.30% | ' | 0.30% | ' | ' | ' | 0.30% | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage rent to be waived | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage rent waived | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117 | 269 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative percentage rent waived | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 636 | 636 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual percentage rent recognized as an expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 729 | 593 | 1,622 | 1,282 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate of increase in annual amount (as a percent) | ' | ' | ' | ' | ' | 8.50% | ' | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate of increase in annual amount, basis | ' | ' | ' | ' | ' | ' | ' | 'U.S. Treasury interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate of increase in annual amount, basis spread (as a percent) | ' | ' | ' | ' | ' | 3.50% | ' | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Improvements sold | ' | ' | ' | ' | ' | ' | ' | 21,923 | 45,229 | ' | ' | 20,038 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase to annual rent payable | ' | ' | ' | ' | ' | ' | ' | 1,863 | 3,844 | ' | ' | 1,703 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Improvements included in property and equipment | ' | ' | ' | ' | ' | 36,269 | ' | 36,269 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of details amounts related to the HPT Leases and other leases that are reflected in real estate rent expense in condensed consolidated statements of operations and comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payments to HPT under the HPT Leases | ' | ' | ' | ' | ' | 55,603 | 54,139 | 110,749 | 107,125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in accrued estimated percentage rent | ' | ' | ' | ' | ' | -21 | -82 | 597 | 584 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to recognize expense on a straight line basis | ' | ' | ' | ' | ' | -559 | -523 | -900 | -900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less sale-leaseback financing obligation amortization | ' | ' | -1,183 | -1,022 | ' | -594 | -512 | -1,183 | -1,022 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less portion of rent payments recognized as interest expense | 1,471 | 1,743 | 2,941 | 3,484 | ' | -1,471 | -1,743 | -2,941 | -3,484 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less deferred tenant improvements allowance amortization | ' | ' | ' | ' | ' | -1,692 | -1,692 | -3,384 | -3,384 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of deferred gain on sale-leaseback transactions | ' | ' | ' | ' | ' | -96 | -77 | -192 | -153 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense related to HPT Leases | ' | ' | ' | ' | ' | 51,170 | 49,510 | 102,746 | 98,766 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent paid to others | 2,629 | 2,591 | 5,315 | 5,198 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to recognize expense on a straight line basis for other leases | -68 | 3 | -126 | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total real estate rent expense | 53,731 | 52,104 | 107,935 | 103,988 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current HPT Leases liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued rent | ' | ' | ' | ' | ' | 18,789 | ' | 18,789 | ' | 18,041 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale-leaseback financing obligation | ' | ' | ' | ' | ' | 2,437 | ' | 2,437 | ' | 2,358 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Straight line rent accrual | ' | ' | ' | ' | ' | 2,437 | ' | 2,437 | ' | 2,382 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred gain on sale-leaseback transactions | ' | ' | ' | ' | ' | 385 | ' | 385 | ' | 385 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tenant improvements allowance | ' | ' | ' | ' | ' | 6,769 | ' | 6,769 | ' | 6,769 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Current HPT Leases liabilities | 30,817 | ' | 30,817 | ' | 29,935 | 30,817 | ' | 30,817 | ' | 29,935 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncurrent HPT Leases liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred rent obligation | ' | ' | ' | ' | ' | 150,000 | ' | 150,000 | ' | 150,000 | 150,000 | ' | 107,085 | 42,915 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale-leaseback financing obligation | ' | ' | ' | ' | ' | 82,801 | ' | 82,801 | ' | 83,762 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Straight line rent accrual | ' | ' | ' | ' | ' | 51,638 | ' | 51,638 | ' | 52,901 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred gain on sale-leaseback transactions | ' | ' | ' | ' | ' | 2,925 | ' | 2,925 | ' | 3,117 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tenant improvements allowance | ' | ' | ' | ' | ' | 50,762 | ' | 50,762 | ' | 54,146 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Noncurrent HPT Lease liabilities | 338,126 | ' | 338,126 | ' | 343,926 | 338,126 | ' | 338,126 | ' | 343,926 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other related party transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of real estate properties leased to be recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of real estate properties not qualifying for operating lease treatment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The term of scheduled rent increase from the initial lease term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of real estate properties for which subleases were terminated | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount funded for leasehold improvements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of installments in which deferred rent is payable | ' | ' | ' | ' | ' | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction of annual rent payable as a percentage of amount received by lessor by eminent domain proceedings or fair market value rent of property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from VDOT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,178 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease to annual rent payable related to a lease agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -525 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent for Ground Leases Subleased from HPT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate fees | 3,148 | 2,899 | 6,002 | 5,416 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of other companies which are shareholders of related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 5 | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.30% | 14.30% | 14.30% | ' | 14.30% | ' | ' | ' | 40.00% | ' | 40.00% | ' | ' |
Amount invested in equity investee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,054 | 6,054 | ' | 6,054 | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investments, carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,785 | 6,785 | ' | 6,785 | ' | 5,913 | ' | 18,604 | ' | 18,604 | ' | 17,672 |
Income (loss) recognized related to equity investments | 685 | 723 | 939 | 1,159 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 104 | 79 | 7 | 155 | ' | ' | 581 | 644 | 932 | 1,004 | ' |
Period of property insurance program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Coverage of property insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Premiums paid under property insurance program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,601 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,857 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of shares | ' | ' | 825 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 825 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for directors' and officers' insurance coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' |
Number of entities to who RMR manages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' |
Aggregate coverage of combined directors' and officers' liability insurance policy purchased with the related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' |
Period for additional directors' and officers' insurance coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' |
Combined directors' and officers' liability insurance policy purchased with related party aggregate excess layer coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' | ' | ' |
Aggregate excess non-indemnifiable coverage of combined directors' and officers' liability insurance policy purchased with the related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' |
Premium payable for combined directors' and officers' liability insurance policy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 351 | ' | ' | ' | ' | ' |
Number of travel centers built | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 2 | ' | ' |
Number of convenience stores built | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 2 | ' | ' |
Number of travel centers operated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 2 | ' | ' |
Number of convenience stores operated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 2 | ' | ' |
Management and accounting fee income recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 | 200 | 400 | 400 | ' |
Net payables | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,495 | ' | 2,495 | ' | 1,147 |
Summarized financial information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | 2,076,109 | 2,018,754 | 4,043,418 | 3,976,105 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,658 | 55,364 | ' |
Total cost of sales (excluding depreciation) | 1,751,016 | 1,717,526 | 3,416,761 | 3,411,070 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,604 | 44,712 | ' |
Operating income | 26,939 | 19,971 | 31,804 | 11,511 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,694 | 2,693 | ' |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -243 | -299 | ' |
Net income | $13,634 | $15,984 | $13,831 | $3,845 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,451 | $2,394 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Feb. 28, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | 31-May-10 | Jun. 30, 2014 | 31-May-10 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2011 | Apr. 30, 2009 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Litigation by California State Water Resources Control Board | Litigation by California State Water Resources Control Board | Litigation by California State Water Resources Control Board | Numerous companies in the petroleum industry, including predecessor and subsidiaries against which litigations were filed | Numerous companies in the petroleum industry, including predecessor and subsidiaries against which litigations were filed | Numerous companies in the petroleum industry, including predecessor and subsidiaries against which litigations were filed | Numerous companies in the petroleum industry, including predecessor and subsidiaries against which litigations were filed | Purported class action suit against Comdata | Purported class action suit against Comdata | Purported class action suit against Comdata | Purported class action suit against Comdata | Minimum | Environmental Matters | Environmental Matters | ||
case | lawsuit | TA entity | TA entity | plaintiffs | plaintiffs | Numerous companies in the petroleum industry, including predecessor and subsidiaries against which litigations were filed | Maximum | ||||||||
fahrenheit | case | case | state | ||||||||||||
item | |||||||||||||||
Commitments and contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross accrued liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,533 | ' |
Less-expected recoveries of future expenditures, included in other noncurrent assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,518 | ' |
Net estimated environmental costs to be funded by future operating cash flows | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,015 | ' |
Suspended penalties amount | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum verified costs, prior to March 2018 | ' | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, liability | ' | ' | ' | 1,708 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance per incident for certain environmental liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 |
Insurance for certain environmental liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 |
Number of states | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' |
Number of lawsuits in which major petroleum refineries and retailers have been named as defendants | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Temperature of motor fuel at the time of sale, at which it was allegedly purchased by retail purchasers (in Fahrenheit) | ' | ' | ' | ' | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of cases filed | ' | ' | ' | ' | 2 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of cases remanded | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Number of plaintiffs pursuing non-California claims | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Number of independent truck stop owners, who are plaintiffs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 5 | ' | ' | ' |
Cash paid for settlement | ' | ' | ' | ' | ' | ' | ' | ' | 130,000 | ' | ' | ' | ' | ' | ' |
Settlement amount | ' | 1,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid by the entity for settlement | ' | ' | 1,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash to be paid by the entity for settlement | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' |
Net expense recorded | $10,000 | ' | ' | ' | ' | ' | ' | ' | ' | $10,000 | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Taxes | ' | ' |
Effective tax rate (as a percent) | 41.80% | ' |
State taxes based on operating income | ' | $372 |
Tax expense related to a noncash deferred liability arising from foreign currency translation adjustments | ' | $180 |