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Revenue from Contracts with Customers
12 Months Ended
Dec. 31, 2024
Revenue from Contracts with Customers  
Revenue from Contracts with Customers

Note 5. Revenue from Contracts with Customers

Disaggregation of Revenue

The following table provides the disaggregation of revenue from contracts with customers and other sales by segment for the periods presented (in thousands):

Year Ended December 31, 2024

 

Revenue from contracts with customers:

    

Wholesale

    

GDSO

    

Commercial

    

Total

 

Petroleum and related product sales

$

2,671,984

$

4,807,765

$

725,395

$

8,205,144

Station operations

 

 

481,982

 

 

481,982

Total revenue from contracts with customers

2,671,984

5,289,747

725,395

8,687,126

Other sales:

Revenue originating as physical forward sale contracts and exchange agreements

8,042,841

346,662

8,389,503

Revenue from leases

 

3,080

 

83,857

 

 

86,937

Total other sales

8,045,921

83,857

346,662

8,476,440

Total sales

$

10,717,905

$

5,373,604

$

1,072,057

$

17,163,566

Year Ended December 31, 2023

 

Revenue from contracts with customers:

    

Wholesale

    

GDSO

    

Commercial

    

Total

 

Petroleum and related product sales

$

3,303,951

$

5,268,268

$

689,201

$

9,261,420

Station operations

 

 

490,942

 

 

490,942

Total revenue from contracts with customers

3,303,951

5,759,210

689,201

9,752,362

Other sales:

Revenue originating as physical forward sale contracts and exchange agreements

6,307,155

349,123

6,656,278

Revenue from leases

 

2,210

 

81,324

 

 

83,534

Total other sales

6,309,365

81,324

349,123

6,739,812

Total sales

$

9,613,316

$

5,840,534

$

1,038,324

$

16,492,174

Year Ended December 31, 2022

 

Revenue from contracts with customers:

    

Wholesale

    

GDSO

    

Commercial

    

Total

 

Petroleum and related product sales

$

3,671,725

$

6,140,823

$

853,243

$

10,665,791

Station operations

 

 

480,455

 

 

480,455

Total revenue from contracts with customers

3,671,725

6,621,278

853,243

11,146,246

Other sales:

Revenue originating as physical forward sale contracts and exchange agreements

7,189,213

460,501

7,649,714

Revenue from leases

 

2,555

 

79,371

 

 

81,926

Total other sales

7,191,768

79,371

460,501

7,731,640

Total sales

$

10,863,493

$

6,700,649

$

1,313,744

$

18,877,886

Nature of Goods and Services

Revenue from Contracts with Customers (ASC 606):

Refined petroleum products and renewable fuels—Under the Partnership’s Wholesale, GDSO and Commercial segments, revenue is recognized at the point where control of the product is transferred over the period that throughput and logistics services are provided to the customer and collectability is reasonably assured.

Station operations—Revenue from convenience store sales of grocery and other merchandise and sundries (such as car wash sales and lottery and ATM commissions) is recognized at the time of the sale to the customer.

Other Revenue:

Revenue Originating as Physical Forward Contracts and Exchanges—The Partnership’s commodity contracts and derivative instrument activity include physical forward commodity sale contracts. The Partnership does not take the normal purchase and sale exemption available under ASC 815 for any of its physical forward contracts. This income is recognized under ASC 815 and is included in sales at the contract value upon settlement at the point where control of the product is transferred to the customer. Income from net exchange differentials included in sales is recognized under ASC 845, “Nonmonetary Transactions,” upon delivery of product to exchange partners.

Revenue from Leases—The Partnership has rental income from gasoline stations and cobranding arrangements and lease income from space leased to several unrelated third parties at several of the Partnership’s terminals.

Transaction Price Allocated to Remaining Performance Obligations

The Partnership has elected certain of the optional exemptions from the disclosure requirement for remaining performance obligations for specific situations in which an entity need not estimate variable consideration to recognize revenue. Accordingly, the Partnership applies the practical expedient in paragraph ASC 606-10-50-14 to its contracts with customers where revenue is tied to a market-index and does not disclose information about variable consideration from remaining performance obligations for which the Partnership recognizes revenue.

The fixed component of estimated revenues expected to be recognized in the future related to performance obligations tied to a market index that are unsatisfied (or partially unsatisfied) at the end of the reporting period are not significant.

Contract Balances

A receivable, which is included in accounts receivable, net in the accompanying consolidated balance sheets, is recognized in the period the Partnership provides services when its right to consideration is unconditional. In contrast, a contract asset will be recognized when the Partnership has fulfilled a contract obligation but must perform other obligations before being entitled to payment. The Partnership had no significant contract assets at both December 31, 2024 and 2023.

The nature of the receivables related to revenue from contracts with customers and other revenue, as well as contract assets, are the same, given they are related to the same customers and have the same risk profile and securitization. Payment terms on invoiced amounts are typically 2 to 30 days.

A contract liability is recognized when the Partnership has an obligation to transfer goods or services to a customer for which the Partnership has received consideration (or the amount is due) from the customer. The Partnership had no significant contract liabilities at both December 31, 2024 and 2023.