Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting

Summary of financial information for the reportable segments

Summarized financial information for the Partnership’s reportable segments is presented in the table below (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Wholesale Segment:
Sales
Gasoline and gasoline blendstocks	$	776,143		$	1,994,556
Crude oil (1)	252,110			591,229
Other oils and related products (2)	943,693			1,412,771
Total	$	1,971,946		$	3,998,556
Product margin
Gasoline and gasoline blendstocks	$	29,829		$	49,663
Crude oil (1)	15,257			23,490
Other oils and related products (2)	35,007			34,616
Total	$	80,093		$	107,769
Gasoline Distribution and Station Operations Segment (3):
Sales
Gasoline	$	697,334		$	768,904
Station operations (4)	83,075			33,972
Total	$	780,409		$	802,876
Product margin
Gasoline	$	61,699		$	33,280
Station operations (4)(5)	36,723			19,797
Total	$	98,422		$	53,077
Commercial Segment:
Sales	$	226,761		$	315,496
Product margin	$	11,558		$	12,329
Combined sales and product margin:
Sales	$	2,979,116		$	5,116,928
Product margin (6)	$	190,073		$	173,175
Depreciation allocated to cost of sales	(21,515		)	(14,151		)
Combined gross profit	$	168,558		$	159,024

(1) Crude oil consists of the Partnership’s crude oil sales and revenue from its logistics activities.

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

(3) For the three months ended March 31, 2015, the GDSO segment includes the January 2015 acquisition of Warren (see Note 2).  As the Warren assets were not in place prior to January 2015, the above results are not directly comparable to the prior period.

(4) Station operations primarily consist of convenience stores sales at the Partnership’s directly operated stores and rental income from gasoline stations leased to dealers or commissioned agents.

(5) For the three months ended March 31, 2014, station operations includes the reclass of loss on asset sales from product margin to operating expenses to conform to the Partnership’s current presentation.

(6) Product margin is a non-GAAP financial measure used by management and external users of our consolidated financial statements to assess our 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):

	Three Months Ended
	March 31,
	2015			2014
Combined gross profit	$	168,558		$	159,024
Operating costs and expenses not allocated to operating segments:
Selling, general and administrative expenses	48,786			37,298
Operating expenses	68,656			47,952
Amortization expense	5,341			4,528
Loss on asset sales	437			663
Total operating costs and expenses	123,220			90,441
Operating income	45,338			68,583
Interest expense	(13,963		)	(11,107		)
Income tax expense	(966		)	(322		)
Net income	30,409			57,154
Net (income) loss attributable to noncontrolling interest	6			(144		)
Net income attributable to Global Partners LP	$	30,415		$	57,010

Schedule of total assets by reportable segment

The table below presents total assets by reportable segment at March 31, 2015 and December 31, 2014 (in thousands):

	Wholesale		Commercial		GDSO		Unallocated		Total
March 31, 2015	$	773,803	$	—	$	1,184,978	$	610,003	$	2,568,784
December 31, 2014	$	811,535	$	—	$	622,860	$	605,582	$	2,039,977