Segment Reporting | Note 16. SEGMENT REPORTING We conduct our business in two segments: 1) the wholesale segment and 2) the retail segment. The wholesale segment includes the wholesale distribution of motor fuel to lessee dealers, independent dealers, commission agents and company operated retail sites. We have exclusive motor fuel distribution contracts with lessee dealers who lease the property from us. We also have exclusive distribution contracts with independent dealers to distribute motor fuel but do not collect rent from the independent dealers. The retail segment includes the retail sale of motor fuel at retail sites operated by commission agents and the sale of convenience merchandise items and the retail sale of motor fuel at company operated sites. A commission agent site is a retail site where we retain title to the motor fuel inventory and sell it directly to our end user customers. At commission agent retail sites, we manage motor fuel inventory pricing and retain the gross profit on motor fuel sales, less a commission to the agent who operates the retail site. Similar to our wholesale segment, we also generate revenues through leasing or subleasing real estate in our retail segment. Unallocated items consist primarily of general and administrative expenses, depreciation, amortization and accretion expense, gains on dispositions and lease terminations, net, and the elimination of the retail segment’s intersegment cost of revenues from motor fuel sales against the wholesale segment’s intersegment revenues from motor fuel sales. The profit in ending inventory generated by the intersegment motor fuel sales is also eliminated. Total assets by segment are not presented as management does not currently assess performance or allocate resources based on that data. The following table reflects activity related to our reportable segments (in thousands): Wholesale Retail Unallocated Consolidated Three Months Ended June 30, 2022 Revenues from fuel sales to external customers $ 795,924 $ 579,325 $ — $ 1,375,249 Intersegment revenues from fuel sales 493,423 — ( 493,423 ) — Revenues from food and merchandise sales — 73,934 — 73,934 Rent income 17,839 3,010 — 20,849 Other revenue 1,807 3,194 — 5,001 Total revenues $ 1,308,993 $ 659,463 $ ( 493,423 ) $ 1,475,033 Operating income (loss) $ 44,264 $ 3,420 $ ( 26,612 ) $ 21,072 Three Months Ended June 30, 2021 Revenues from fuel sales to external customers $ 530,099 $ 260,125 $ — $ 790,224 Intersegment revenues from fuel sales 198,878 — ( 198,878 ) — Revenues from food and merchandise sales — 45,208 — 45,208 Rent income 18,209 2,653 — 20,862 Other revenue 729 2,311 — 3,040 Total revenues $ 747,915 $ 310,297 $ ( 198,878 ) $ 859,334 Operating income (loss) $ 33,244 $ 953 $ ( 26,035 ) $ 8,162 Six Months Ended June 30, 2022 Revenues from fuel sales to external customers $ 1,379,045 $ 1,001,567 $ — $ 2,380,612 Intersegment revenues from fuel sales 837,424 — ( 837,424 ) — Revenues from food and merchandise sales — 136,281 — 136,281 Rent income 35,316 6,160 — 41,476 Other revenue 3,593 6,282 — 9,875 Total revenues $ 2,255,378 $ 1,150,290 $ ( 837,424 ) $ 2,568,244 Operating income (loss) $ 81,121 $ 4,096 $ ( 54,426 ) $ 30,791 Six Months Ended June 30, 2021 Revenues from fuel sales to external customers $ 928,592 $ 457,612 $ — $ 1,386,204 Intersegment revenues from fuel sales 343,330 — ( 343,330 ) — Revenues from food and merchandise sales — 83,047 — 83,047 Rent income 35,909 5,425 — 41,334 Other revenue 1,863 4,170 — 6,033 Total revenues $ 1,309,694 $ 550,254 $ ( 343,330 ) $ 1,516,618 Operating income (loss) $ 58,149 $ 1,246 $ ( 52,097 ) $ 7,298 Receivables relating to the revenue streams above are as follows (in thousands): June 30, December 31, 2022 2021 Receivables from fuel and merchandise sales $ 46,277 $ 27,932 Receivables for rent and other lease-related charges 3,373 6,548 Total accounts receivable $ 49,650 $ 34,480 Performance obligations are satisfied as fuel is delivered to the customer and as merchandise is sold to the consumer. Many of our fuel contracts with our customers include minimum purchase volumes measured on a monthly basis, although such revenue is not material. Receivables from fuel are recognized on a per-gallon rate and are generally collected within 10 days of delivery. The balance of unamortized costs incurred to obtain certain contracts with customers was $ 11.2 million and $ 11.0 million at June 30, 2022 and December 31, 2021, respectively. Amortization of such costs is recorded against operating revenues and amounted to $ 0.4 million for the three months ended June 30, 2022 and 2021 and $ 0.9 million and $ 0.7 million for the six months ended June 30, 2022 and 2021, respectively. Receivables from rent and other lease-related charges are generally collected at the beginning of the month. |