Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2013

Segment Reporting

Summary of financial information for the reportable segments

 Summarized financial information for the Partnership's reportable segments for the years ended December 31 is presented in the table below (in thousands):

	Year Ended December 31,
	2013			2012			2011
Wholesale Segment (1):
Sales
Gasoline and gasoline blendstocks	$	8,085,225		$	8,827,621		$	8,660,412
Crude oil (2)		3,561,428			1,205,588			40,873
Other oils and related products (3)		3,559,001			3,727,701			3,895,632
Total	$	15,205,654		$	13,760,910		$	12,596,917
Product margin
Gasoline and gasoline blendstocks	$	43,147		$	54,639		$	56,224
Crude oil (2)		92,807			35,538			12,301
Other oils and related products (3)		66,916			55,252			55,308
Total	$	202,870		$	145,429		$	123,833
Gasoline Distribution and Station Operations Segment (4):
Sales
Gasoline	$	3,231,925		$	3,024,775		$	1,404,988
Station operations (5)		146,503			124,131			58,786
Total	$	3,378,428		$	3,148,906		$	1,463,774
Product margin
Gasoline	$	150,147		$	139,706		$	56,690
Station operations (5)		80,106			66,384			31,491
Total	$	230,253		$	206,090		$	88,181
Commercial Segment:
Sales	$	1,005,526		$	716,181		$	775,038
Product margin	$	28,359		$	18,652		$	21,975
Combined sales and product margin:
Sales	$	19,589,608		$	17,625,997		$	14,835,729
Product margin (6)	$	461,482		$	370,171		$	233,989
Depreciation allocated to cost of sales		(55,653	)		(36,683	)		(24,391	)
Combined gross profit	$	405,829		$	333,488		$	209,598

(1)

Segment reporting results for the prior periods have been reclassified to conform to the Partnership's current presentation.

(2)

Crude oil consists of the Partnership's crude oil sales and revenue from its logistics activities and includes the February 2013 acquisitions of Basin Transload and Cascade Kelly (see Note 3). As the Basin Transload and Cascade Kelly assets were not in place for a portion of the year ended December 31, 2013 or for any portion of the years ended December 31, 2012 and 2011, the above results are not directly comparable for periods prior to February 2013.

(3)

Other oils and related products primarily consist of distillates, residual oil and propane.

(4)

On March 1, 2012, the Partnership completed its acquisition of Alliance. As these assets were not in place for a portion of the year ended December 31, 2012 or for any portion of the year ended December 31, 2011, the above results are not directly comparable for periods prior to March 1, 2012.

(5)

Station operations primarily consist of convenience store sales at the Partnership's directly operated stores and rental income from dealer leased or commission agent leased gasoline stations.

(6)

Product margin is a non-GAAP financial measure used by management and external users of the Partnership's consolidated financial statements to assess the Partnership's business. The table above includes a reconciliation of product margin on a combined basis to gross profit, a directly comparable GAAP measure.

Schedule of reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements

A reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements is as follows (in thousands):

	Year Ended December 31,
	2013			2012			2011
Combined gross profit	$	405,829		$	333,488		$	209,598
Operating costs and expenses not allocated to operating segments:
Selling, general and administrative expenses		115,491			95,710			73,882
Operating expenses		185,713			140,413			73,534
Restructuring charges		—			—			2,030
Amortization expense		19,216			7,024			4,800
Total operating costs and expenses		320,420			243,147			154,246
Operating income		85,409			90,341			55,352
Interest expense		(43,537	)		(42,021	)		(35,932	)
Income tax expense		(819	)		(1,577	)		(68	)
Net income		41,053			46,743			19,352
Net loss attributable to noncontrolling interest		1,562			—			—
Net income attributable to Global Partners LP	$	42,615		$	46,743		$	19,352