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Segment Reporting
6 Months Ended
Jun. 30, 2020
Segment Reporting  
Segment Reporting

Note 15.    Segment Reporting

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

Three Months Ended

Six Months Ended

June 30,

June 30,

 

    

2020

    

2019

    

2020

2019

 

Wholesale Segment:

Sales

Gasoline and gasoline blendstocks

$

516,326

$

1,634,618

$

1,414,783

$

2,640,323

Crude oil (1)

 

9,039

 

28,535

 

15,492

 

42,528

Other oils and related products (2)

 

251,994

 

341,375

 

834,562

 

1,030,883

Total

$

777,359

$

2,004,528

$

2,264,837

$

3,713,734

Product margin

Gasoline and gasoline blendstocks

$

57,779

$

29,384

$

66,923

$

56,374

Crude oil (1)

 

9,203

 

(798)

 

4,733

 

(7,024)

Other oils and related products (2)

 

44,523

 

9,415

 

44,733

 

23,495

Total

$

111,505

$

38,001

$

116,389

$

72,845

Gasoline Distribution and Station Operations Segment:

Sales

Gasoline

$

455,161

$

1,025,669

$

1,200,776

$

1,855,841

Station operations (3)

 

104,095

 

120,526

 

202,721

 

225,185

Total

$

559,256

$

1,146,195

$

1,403,497

$

2,081,026

Product margin

Gasoline

$

96,770

$

87,874

$

204,000

$

175,299

Station operations (3)

 

48,801

 

57,552

 

97,442

 

108,512

Total

$

145,571

$

145,426

$

301,442

$

283,811

Commercial Segment:

Sales

$

132,962

$

356,817

$

396,336

$

692,406

Product margin

$

3,003

$

4,546

$

8,918

$

11,004

Combined sales and Product margin:

Sales

$

1,469,577

$

3,507,540

$

4,064,670

$

6,487,166

Product margin (4)

$

260,079

$

187,973

$

426,749

$

367,660

Depreciation allocated to cost of sales

 

(20,132)

 

(20,830)

 

(41,064)

 

(43,673)

Combined gross profit

$

239,947

$

167,143

$

385,685

$

323,987

(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)Station operations consist of convenience store sales, rental income and sundries.
(4)Product margin is a non-GAAP financial measure used by management and external users of the Partnership’s consolidated financial statements to assess its business. The table above includes a reconciliation of product margin on a combined basis to gross profit, a directly comparable GAAP measure.

Approximately 83 million gallons and 119 million gallons of the GDSO segment’s sales for the three months ended June 30, 2020 and 2019, respectively, and 188 million gallons and 230 million gallons of the GDSO segment’s sales for the six months ended June 30, 2020 and 2019, respectively, were supplied from petroleum products and renewable fuels sourced by the Wholesale segment. The Commercial segment’s sales were predominantly sourced by the Wholesale segment. These intra-segment sales are not reflected as sales in the Wholesale segment as they are eliminated.

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

Six Months Ended

    

2020

    

2019

    

2020

2019

    

Combined gross profit

$

239,947

$

167,143

$

385,685

$

323,987

Operating costs and expenses not allocated to operating segments:

Selling, general and administrative expenses

 

59,017

 

40,968

 

99,940

 

82,058

Operating expenses

 

76,714

 

86,451

 

159,267

 

169,395

Lease exit and termination gain

 

 

 

 

(493)

Amortization expense

2,713

2,977

5,425

5,953

Net gain on sale and disposition of assets

(811)

(1,128)

(68)

(575)

Long-lived asset impairment

1,724

1,724

Total operating costs and expenses

 

139,357

 

129,268

 

266,288

 

256,338

Operating income

 

100,590

 

37,875

 

119,397

 

67,649

Interest expense

 

(21,089)

 

(23,066)

 

(42,690)

 

(46,022)

Income tax (expense) benefit

 

(3,528)

 

(438)

 

2,341

 

(462)

Net income

 

75,973

 

14,371

 

79,048

 

21,165

Net loss attributable to noncontrolling interest

 

289

 

118

 

490

 

450

Net income attributable to Global Partners LP

$

76,262

$

14,489

$

79,538

$

21,615

The Partnership’s foreign assets and foreign sales were immaterial as of and for the three and six months ended June 30, 2020 and 2019.

Segment Assets

The Partnership’s terminal assets are allocated to the Wholesale and Commercial segments, and its retail gasoline stations are allocated to the GDSO segment. Due to the commingled nature and uses of the remainder of the Partnership’s assets, it is not reasonably possible for the Partnership to allocate these assets among its reportable segments.

The table below presents total assets by reportable segment at June 30, 2020 and December 31, 2019 (in thousands):

 

Wholesale

 

Commercial

 

GDSO

 

Unallocated

 

Total

June 30, 2020

   

$

642,907

   

$

   

$

1,537,103

   

$

342,268

   

$

2,522,278

December 31, 2019

   

$

773,696

   

$

   

$

1,576,655

   

$

458,076

   

$

2,808,427