| Goodwill and Intangible Assets |
9. Goodwill and Intangible Assets
Goodwill
The Company reports revenue and operating results for its operating segments: retail, wholesale, fleet fueling and GPMP (see Note 23 for a description of these operating segments). The following summarizes the activity in goodwill, by segment:
|
|
|
|
|
|
|
|
|
|
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|
|
|
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Retail |
|
|
GPMP |
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|
Total |
|
|
|
(in thousands) |
|
Beginning balance, January 1, 2021 |
|
$ |
14,861 |
|
|
$ |
159,076 |
|
|
$ |
173,937 |
|
Goodwill attributable to acquisitions during the year |
|
|
— |
|
|
|
7,556 |
|
|
|
7,556 |
|
Goodwill adjustment – Empire Acquisition |
|
|
— |
|
|
|
16,155 |
|
|
|
16,155 |
|
Ending balance, December 31, 2021 |
|
$ |
14,861 |
|
|
$ |
182,787 |
|
|
$ |
197,648 |
|
Goodwill attributable to acquisitions during the year |
|
|
— |
|
|
|
19,585 |
|
|
|
19,585 |
|
Goodwill adjustment – Handy Mart Acquisition |
|
|
— |
|
|
|
64 |
|
|
|
64 |
|
Ending balance, December 31, 2022 |
|
$ |
14,861 |
|
|
$ |
202,436 |
|
|
$ |
217,297 |
|
Intangible Assets, Net
Intangible assets consisted of the following:
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|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(in thousands) |
|
Wholesale fuel supply agreements |
|
$ |
202,512 |
|
|
$ |
198,232 |
|
Trade names |
|
|
37,084 |
|
|
|
35,760 |
|
Options to acquire ownership rights and develop stores |
|
|
6,372 |
|
|
|
6,372 |
|
Non-contractual customer relationships |
|
|
25,220 |
|
|
|
— |
|
Other intangibles |
|
|
21,690 |
|
|
|
20,473 |
|
Accumulated amortization – Wholesale fuel supply agreements |
|
|
(40,645 |
) |
|
|
(23,932 |
) |
Accumulated amortization – Trade names |
|
|
(33,060 |
) |
|
|
(30,341 |
) |
Accumulated amortization – Options to acquire ownership rights and develop stores |
|
|
(3,939 |
) |
|
|
(3,140 |
) |
Accumulated amortization – Non-contractual customer relationships |
|
|
(525 |
) |
|
|
— |
|
Accumulated amortization – Other intangibles |
|
|
(17,586 |
) |
|
|
(17,431 |
) |
|
|
$ |
197,123 |
|
|
$ |
185,993 |
|
Franchise rights and liquor licenses of $3.1 million and $2.5 million as of December 31, 2022 and 2021, respectively, were not being amortized.
Amortization expense related to definite lived intangible assets was $20.9 million, $23.6 million and $12.2 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Estimated amortization expense for each of the next five years and thereafter is expected to be as follows:
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|
|
|
|
Future Amortization Expense |
|
Amount |
|
|
|
(in thousands) |
|
2023 |
|
$ |
20,924 |
|
2024 |
|
|
19,954 |
|
2025 |
|
|
19,543 |
|
2026 |
|
|
19,250 |
|
2027 |
|
|
18,009 |
|
Thereafter |
|
|
96,297 |
|
|
|
$ |
193,977 |
|
|