| 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
|
GPMP |
|
|
Total |
|
|
|
(in thousands) |
|
Beginning balance, January 1, 2022 |
|
$ |
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 |
|
Goodwill attributable to acquisitions during the year |
|
|
— |
|
|
|
71,570 |
|
|
|
71,570 |
|
Goodwill adjustment – Pride Adjustment |
|
|
2,891 |
|
|
|
415 |
|
|
|
3,306 |
|
Ending balance, December 31, 2023 |
|
$ |
17,752 |
|
|
$ |
274,421 |
|
|
$ |
292,173 |
|
Intangible Assets, Net
Intangible assets consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
|
Wholesale fuel supply agreements |
|
$ |
219,262 |
|
|
$ |
202,512 |
|
Trade names |
|
|
39,584 |
|
|
|
37,084 |
|
Options to acquire ownership rights |
|
|
3,241 |
|
|
|
6,372 |
|
Non-contractual customer relationships |
|
|
46,720 |
|
|
|
25,220 |
|
Other intangibles |
|
|
21,825 |
|
|
|
21,690 |
|
Accumulated amortization – Wholesale fuel supply agreements |
|
|
(59,383 |
) |
|
|
(40,645 |
) |
Accumulated amortization – Trade names |
|
|
(34,891 |
) |
|
|
(33,060 |
) |
Accumulated amortization – Options to acquire ownership rights |
|
|
(1,377 |
) |
|
|
(3,939 |
) |
Accumulated amortization – Non-contractual customer relationships |
|
|
(2,413 |
) |
|
|
(525 |
) |
Accumulated amortization – Other intangibles |
|
|
(18,016 |
) |
|
|
(17,586 |
) |
|
|
$ |
214,552 |
|
|
$ |
197,123 |
|
Franchise rights and liquor licenses of $3.1 million and $3.1 million as of December 31, 2023 and 2022, respectively, were not being amortized.
Amortization expense related to definite lived intangible assets was $23.4 million, $20.9 million and $23.6 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Estimated amortization expense for each of the next five years and thereafter is expected to be as follows:
|
|
|
|
|
Future Amortization Expense |
|
Amount |
|
|
|
(in thousands) |
|
2024 |
|
$ |
23,296 |
|
2025 |
|
|
22,885 |
|
2026 |
|
|
22,524 |
|
2027 |
|
|
21,235 |
|
2028 |
|
|
20,652 |
|
Thereafter |
|
|
100,869 |
|
|
|
$ |
211,461 |
|
|