Segment Information Disclosure | 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 the lessee dealer, independent dealer, DMS and CST customer groups. 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. Similar to lessee dealers, we have motor fuel distribution agreements with DMS and CST and collect rent from both. The Retail segment includes the sale of convenience merchandise items, the retail sale of motor fuel at company-operated sites and the retail sale of motor fuel at sites operated by commission agents. A commission agent 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 sites, we manage motor fuel inventory pricing and retain the gross profit on motor fuel sales. We pay a commission to the agent who operates the retail site. As part of our evaluation of the economic performance of our retail sites, we will from time to time convert company-owned convenience stores from our Retail segment to our lessee dealer customer group in our Wholesale segment. During the first six months of 2016, we converted 70 company-operated convenience stores from our Retail segment to our lessee dealer customer group in our Wholesale segment. As such, we no longer generate revenues from the retail sale of motor fuel or merchandise at these stores subsequent to the date of conversion and we no longer incur retail operating expenses related to these sites. However, we continue to supply these sites with motor fuel on a wholesale basis pursuant to the fuel supply contract with the lessee dealer. Further, we continue to own/lease the property and earn rental income under lease/sublease agreements with the lessee dealers under triple net leases. The lessee dealer owns all motor fuel and convenience merchandise and retains all gross profit on such operating activities. Prior to 2016, CrossAmerica netted lease executory costs such as real estate taxes, maintenance, and utilities that CrossAmerica paid and re-billed to customers on its statement of operations. During the first quarter of 2016, CrossAmerica began accounting for such amounts as rent income and operating expenses and reflected this change in presentation retrospectively. This change resulted in a $2.5 million and $5.1 million increase in rent and other income and operating expenses for the wholesale segment for the three and six months ended June 30, 2015 , respectively. Unallocated items consist primarily of general and administrative expenses, depreciation, amortization and accretion expense, gains on sales of assets, 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, 2016 Revenues from fuel sales to external customers $ 366,838 $ 91,701 $ — $ 458,539 Intersegment revenues from fuel sales 67,209 — (67,209 ) — Revenues from food and merchandise sales — 33,297 — 33,297 Rent income 18,997 1,354 — 20,351 Other revenue 457 — — 457 Total revenues $ 453,501 $ 126,352 $ (67,209 ) $ 512,644 Income from CST Fuel Supply Equity $ 4,245 $ — $ — $ 4,245 Operating income (loss) $ 25,900 $ 2,728 $ (19,272 ) $ 9,356 Three Months Ended June 30, 2015 Revenues from fuel sales to external customers $ 445,576 $ 147,207 $ — $ 592,783 Intersegment revenues from fuel sales 109,195 — (109,195 ) — Revenues from food and merchandise sales — 42,397 — 42,397 Rent income 13,230 1,378 — 14,608 Other revenue 225 123 — 348 Total revenues $ 568,226 $ 191,105 $ (109,195 ) $ 650,136 Income from CST Fuel Supply Equity $ 1,177 $ — $ — $ 1,177 Operating income (loss) $ 17,682 $ 4,595 $ (18,603 ) $ 3,674 Wholesale Retail Unallocated Consolidated Six Months Ended June 30, 2016 Revenues from fuel sales to external customers $ 610,241 $ 165,739 $ — $ 775,980 Intersegment revenues from fuel sales 115,646 — (115,646 ) — Revenues from food and merchandise sales — 63,746 — 63,746 Rent income 37,196 2,686 — 39,882 Other revenue 776 — — 776 Total revenues $ 763,859 $ 232,171 $ (115,646 ) $ 880,384 Income from CST Fuel Supply Equity $ 8,296 $ — $ — $ 8,296 Operating income (loss) $ 49,941 $ 4,398 $ (39,062 ) $ 15,277 Six Months Ended June 30, 2015 Revenues from fuel sales to external customers $ 776,111 $ 253,400 $ — $ 1,029,511 Intersegment revenues from fuel sales 176,534 — (176,534 ) — Revenues from food and merchandise sales — 71,026 — 71,026 Rent income 26,294 2,734 — 29,028 Other revenue 905 123 — 1,028 Total revenues $ 979,844 $ 327,283 $ (176,534 ) $ 1,130,593 Income from CST Fuel Supply Equity $ 2,275 $ — $ — $ 2,275 Operating income (loss) $ 35,284 $ 8,640 $ (40,683 ) $ 3,241 |