Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting

Summary of financial information for the reportable segments (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.

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

Schedule of total assets by reportable segment (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