Property and Equipment

12 Months Ended

Dec. 31, 2024

Property and Equipment

Property and Equipment

Note 7. Property and Equipment

Property and equipment consisted of the following at December 31 (in thousands):

	2024		2023
Buildings and improvements	$	1,948,849	$	1,738,122
Land		678,687		614,548
Fixtures and equipment		56,700		47,589
Idle plant assets		30,500		30,500
Construction in process		71,436		54,281
Capitalized internal use software		33,846		33,808
Total property and equipment		2,820,018		2,518,848
Less accumulated depreciation		1,113,413		1,005,303
Total	$	1,706,605	$	1,513,545

Property and equipment includes retail gasoline station assets held for sale of $5.2 million and $20.3 million at December 31, 2024 and 2023, respectively.

At December 31, 2024, the Partnership had a $38.3 million remaining net book value of long-lived assets at its West Coast facility, including $30.5 million related to the Partnership’s ethanol plant acquired in 2013. The Partnership would need to take certain measures to prepare the facility for ethanol production in order to place the plant into service and commence depreciation. Therefore, the $30.5 million related to the ethanol plant was included in property and equipment and classified as idle plant assets at both December 31, 2024 and 2023.

If the Partnership is unable to generate cash flows to support the recoverability of the plant and facility assets, this may become an indicator of potential impairment of the West Coast facility. The Partnership believes these assets are recoverable but continues to monitor the market for ethanol, the continued business development of this facility for ethanol or other product transloading, and the related impact this may have on the facility’s operating cash flows and whether this would constitute an impairment indicator.

Construction in process in 2024 included $26.2 million in costs related to the Partnership’s gasoline stations and $45.2 million in costs related to the Partnership’s terminals.

Construction in process in 2023 included $35.2 million in costs related to the Partnership’s gasoline stations and $19.1 million in costs related to the Partnership’s terminals.

Depreciation

Depreciation expense allocated to cost of sales was approximately $126.2 million, $94.5 million and $87.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Depreciation expense allocated to selling, general and administrative expenses was approximately $5.2 million, $7.4 million and $8.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.