Sale and Disposition of Assets

6 Months Ended

Jun. 30, 2020

Sale and Disposition of Assets

Sale and Dispositions of Assets

Note 7.    Sales and Disposition of Assets

The following table provides the Partnership’s (gain) loss on sale and dispositions of assets for the periods presented (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Periodic divestiture of gasoline stations	$	(650)	$	—		(278)		(142)
Strategic asset divestiture program - Real estate firm coordinated sale		(168)		(1,433)		(100)		(1,730)
Loss on assets held for sale		—		480		406		1,265
Other		7		(175)		(96)		32
Total	$	(811)	$	(1,128)	$	(68)	$	(575)

Periodic Divestiture of Gasoline Stations

As part of the routine course of operations in the GDSO segment, the Partnership may periodically divest certain gasoline stations. The gain or loss on the sale, representing cash proceeds less net book value of assets and recognized liabilities at disposition, net of settlement and dispositions costs, is recorded in net gain on sale and disposition of assets in the accompanying consolidated statements of operations and amounted to a gain of ($0.6 million) and $0 for the three months ended June 30, 2020 and 2019, respectively, and ($0.3 million) and ($0.1 million) for the six months ended June 30, 2020, and 2019, respectively.

Strategic Asset Divestiture Program

The Partnership identified certain non-strategic GDSO sites that are part of its Strategic Asset Divestiture Program (the “Divestiture Program”). The gain or loss on the sales of these sites, representing cash proceeds less net book value of assets and recognized liabilities at disposition, net of settlement and dispositions costs, is recorded in net gain on sale and disposition of assets in the accompanying consolidated statements of operations.

Real Estate Firm Coordinated Sales—The Partnership has retained a real estate firm to coordinate the continuing sale of non-strategic GDSO sites. The Partnership sold two sites and three sites during the three and six months ended June 30, 2020, respectively. The Partnership recognized a gain of ($0.2 million) and ($0.1 million) on the sales of these sites for the three and six months ended June 30, 2020, respectively, including the derecognition of $0.5 million and $0.6 million of GDSO goodwill for these respective periods.

The Partnership recognized a gain of ($1.4 million) and ($1.7 million) on the sales of sites for the three and six months ended June 30, 2019, respectively, including the derecognition of $1.3 million and $2.2 million of GDSO goodwill for these respective periods.

Loss on Assets Held for Sale

In conjunction with the periodic divestiture of gasoline stations and the sale of sites within the Divestiture Program, the Partnership may classify certain gasoline station assets as held for sale. Impairment charges related to assets held for sale are included in net gain on sale and disposition of assets in the accompanying consolidated statements of operations.

The Partnership classified 1 site as held for sale at June 30, 2020 associated with the periodic divestiture of gasoline station sites and the real estate firm coordinated sales discussed above. Impairment charges related to these assets held for sale were $0 and $0.4 million for the three and six months ended June 30, 2020, respectively.

The Partnership recorded impairment charges related to assets held for sale associated with the periodic divestiture of gasoline station sites and the real estate firm coordinated sales in the amount of $0.5 million and $1.3 million for the three and six months ended June 30, 2019, respectively.

Assets held for sale of $0.2 million and $4.6 million at June 30, 2020 and December 31, 2019, respectively, are included in property and equipment in the accompanying consolidated balance sheets. Assets held for sale are expected to be sold within the next 12 months.

Other

The Partnership recognizes gains and losses on the sale and disposition of other assets, including vehicles, fixtures and equipment, and the gain or loss on such other assets are included in other in the aforementioned table.