Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Reporting

v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting

23. Segment Reporting

The reportable segments were determined based on information reviewed by the Company’s chief operating decision maker (“CODM”) for operational decision-making purposes, and the segment information is prepared on the same basis that the CODM

reviews such financial information. The Company’s reportable segments are retail, wholesale, fleet fueling and GPMP. The CODM utilizes operating income from each segment to assess its operating performance and to make decisions about allocating resources to each segment. Arie Kotler, the Company’s President, Chief Executive Officer and Chairman of the Board is the CODM.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies except that rent expenses for each segment are recognized and measured on the basis of cash payments.

The retail segment includes the operation of a chain of retail stores, which includes convenience stores selling fuel products and other merchandise to retail customers. At its retail convenience stores, the Company owns the merchandise and fuel inventory and employs personnel to manage the store.

The wholesale segment supplies fuel to dealers, sub-wholesalers and bulk and spot purchasers, on either a cost plus or consignment basis. For consignment arrangements, the Company retains ownership of the fuel inventory at the site, is responsible for the pricing of the fuel to the end consumer, and shares the gross profit with the dealers.

The fleet fueling segment includes the operation of proprietary and third-party cardlock locations (unstaffed fueling locations), and commissions from the sales of fuel using proprietary fuel cards that provide customers access to a nationwide network of fueling sites.

The GPMP segment includes GPMP and includes its sale and supply of fuel to substantially all of GPM’s sites that sell fuel in the retail and wholesale segments, at GPMP’s cost of fuel (including taxes and transportation) plus a fixed margin (currently 5.0 cents per gallon), and charges a fixed fee primarily to sites in the fleet fueling segment which are not supplied by GPMP (currently 5.0 cents per gallon sold). GPMP also supplies fuel to a limited number of dealers.

The “All Other” segment includes the results of non-reportable segments which do not meet both quantitative and qualitative criteria as defined under ASC 280, Segment Reporting.

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown, however, the fuel costs in the retail, wholesale and fleet segments exclude the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel.

The majority of general and administrative expenses, depreciation and amortization, net other expenses, net interest and other financial expenses, income taxes and minor other income items including intercompany operating leases are not allocated to the segments. Other segment expenses include utilities, telephone, upkeep and taxes, insurance, supplies, advertising, and certain other expenses. Other segment expenses in the GPMP segment also include general and administrative expenses, depreciation and amortization, and other income, net.

With the exception of goodwill as described in Note 9 above, assets and liabilities relevant to the reportable segments are generally not assigned to any particular segment, but rather, managed and reviewed by the CODM at the consolidated level. All reportable segment revenues were generated from sites within the U.S. and substantially all of the Company’s assets were within the U.S. No external customer represented more than 10% of revenues.

Inter-segment transactions primarily included the distribution of fuel by GPMP to substantially all of GPM’s sites that sell fuel (both in the retail and wholesale segments) and charges by GPMP primarily to sites that sell fuel in the fleet fueling segment which are not supplied by GPMP. The effect of these inter-segment transactions was eliminated in the consolidated financial statements.

 

Year Ended December 31, 2024

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

3,509,935

 

 

$

2,799,869

 

 

$

515,462

 

 

$

3,624

 

 

$

30,029

 

 

$

6,858,919

 

Merchandise revenue

 

 

1,767,345

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,767,345

 

Other revenues, net

 

 

65,264

 

 

 

29,140

 

 

 

9,135

 

 

 

838

 

 

 

1,321

 

 

 

105,698

 

Total revenues from external customers

 

$

5,342,544

 

 

$

2,829,009

 

 

$

524,597

 

 

$

4,462

 

 

$

31,350

 

 

$

8,731,962

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

4,587,458

 

 

$

20,396

 

 

$

4,607,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

3,081,719

 

 

$

2,709,519

 

 

$

451,173

 

 

$

4,481,926

 

 

 

 

 

 

 

Merchandise costs

 

 

1,187,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

326,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

92,977

 

 

 

7,651

 

 

 

4,249

 

 

 

 

 

 

 

 

 

 

Rent

 

 

142,781

 

 

 

24,705

 

 

 

11,204

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

63,217

 

 

 

3,156

 

 

 

4,201

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

164,683

 

 

 

4,167

 

 

 

5,263

 

 

 

10,956

 

 

 

52,195

 

 

 

 

Operating income (loss) from segments

 

$

282,404

 

 

$

79,811

 

 

$

48,507

 

 

$

99,038

 

 

$

(449

)

 

$

509,311

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

 

 

$

(31,698

)

 

 

 

 

$

(31,698

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

124

 

 

$

124

 

 

Year Ended December 31, 2023

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

3,858,777

 

 

$

3,039,904

 

 

$

530,937

 

 

$

3,681

 

 

$

31,073

 

 

$

7,464,372

 

Merchandise revenue

 

 

1,838,001

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,838,001

 

Other revenues, net

 

 

74,406

 

 

 

25,775

 

 

 

7,818

 

 

 

939

 

 

 

1,420

 

 

 

110,358

 

Total revenues from external customers

 

 

5,771,184

 

 

 

3,065,679

 

 

 

538,755

 

 

 

4,620

 

 

 

32,493

 

 

 

9,412,731

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,160,146

 

 

$

19,643

 

 

$

5,179,789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

3,423,455

 

 

$

2,946,996

 

 

$

475,037

 

 

$

5,052,391

 

 

 

 

 

 

 

Merchandise costs

 

 

1,252,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

325,920

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

95,833

 

 

 

9,398

 

 

 

3,997

 

 

 

 

 

 

 

 

 

 

Rent

 

 

137,647

 

 

 

22,124

 

 

 

10,172

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

59,324

 

 

 

3,309

 

 

 

3,690

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

160,724

 

 

 

4,872

 

 

 

4,439

 

 

 

9,929

 

 

 

51,303

 

 

 

 

Operating income from segments

 

$

315,402

 

 

$

78,980

 

 

$

41,420

 

 

$

102,446

 

 

$

833

 

 

$

539,081

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

 

 

$

(29,487

)

 

 

 

 

$

(29,487

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(39

)

 

$

(39

)

 

Year Ended December 31, 2022

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

 

 

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

3,887,549

 

 

$

3,234,145

 

 

$

270,670

 

 

$

5,160

 

 

$

3,566

 

 

$

7,401,090

 

Merchandise revenue

 

 

1,647,642

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,647,642

 

Other revenues, net

 

 

67,280

 

 

 

23,451

 

 

 

2,178

 

 

 

1,024

 

 

 

134

 

 

 

94,067

 

Total revenues from external customers

 

$

5,602,471

 

 

$

3,257,596

 

 

$

272,848

 

 

$

6,184

 

 

$

3,700

 

 

$

9,142,799

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

5,678,167

 

 

$

4,264

 

 

$

5,682,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

3,471,321

 

 

$

3,135,988

 

 

$

242,849

 

 

$

5,585,050

 

 

 

 

 

 

 

Merchandise costs

 

 

1,146,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

275,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

89,812

 

 

 

9,701

 

 

 

1,915

 

 

 

 

 

 

 

 

 

 

Rent

 

 

118,492

 

 

 

24,743

 

 

 

4,103

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

52,839

 

 

 

2,511

 

 

 

913

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

133,625

 

 

 

5,588

 

 

 

1,802

 

 

 

10,266

 

 

 

7,172

 

 

 

 

Operating income from segments

 

$

314,879

 

 

$

79,065

 

 

$

21,266

 

 

$

89,035

 

 

$

792

 

 

$

505,037

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

 

 

$

(11,654

)

 

 

 

 

$

(11,654

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(74

)

 

$

(74

)

 

A reconciliation of operating income from reportable segments to consolidated income before income taxes on the consolidated statements of operations was as follows:

 

 

 

For the Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Operating income from reportable segments

 

$

509,760

 

 

$

538,248

 

 

$

504,245

 

All other operating loss (income)

 

 

(449

)

 

 

833

 

 

 

792

 

Intercompany charges by GPMP 1

 

 

(109,201

)

 

 

(111,729

)

 

 

(98,412

)

Interest and other financial expenses, net

 

 

(31,698

)

 

 

(29,487

)

 

 

(11,654

)

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

Site operating expenses

 

 

(13,848

)

 

 

(13,647

)

 

 

2,264

 

General and administrative expenses

 

 

(159,335

)

 

 

(162,132

)

 

 

(137,072

)

Depreciation and amortization

 

 

(125,043

)

 

 

(120,232

)

 

 

(94,383

)

Other expenses, net

 

 

(7,858

)

 

 

(13,327

)

 

 

(9,816

)

Interest and other financial expenses, net

 

 

(35,463

)

 

 

(41,756

)

 

 

(48,355

)

Income before income taxes

 

$

26,865

 

 

$

46,771

 

 

$

107,609

 

1 Represents the estimated fixed margin or fixed fee (currently 5.0 cents per gallon) paid to GPMP for the cost of fuel and recorded by GPMP as inter-segment revenues.