Segment Reporting

6 Months Ended

Jul. 03, 2011

Segment Reporting

Segment Reporting

14. Segment Reporting

The Company operates its business in two primary operating segments, both of which are included as reportable segments. No operating segments have been aggregated in identifying the two reportable segments. The retail segment, Stripes, operates retail convenience stores in Texas, New Mexico and Oklahoma that sell merchandise, prepared food and motor fuel, and also offer a variety of services including car washes, lottery, ATM, money orders, prepaid phone cards and wireless services and movie rentals. The wholesale segment, SPC, purchases fuel from a number of refiners and supplies it to the Company's retail stores, to independently-owned dealer stations under long-term supply agreements and to other end users of motor fuel. Sales of fuel from the wholesale to retail segment are at delivered cost, including tax and freight. This amount is reflected in intercompany eliminations of fuel revenue. There are no customers who are individually material. Amounts in the "All Other" column include APT, corporate overhead and other costs not allocated to the two primary segments.

Segment Financial Data for the Three Months Ended July 4, 2010

(dollars and gallons in thousands)

	Retail Segment		Wholesale Segment		Intercompany Eliminations			All Other			Totals
Revenue:
Merchandise	$	208,276	$	—	$	—		$	—		$	208,276
Fuel		511,646		687,054		(399,530	)		—			799,170
Other		7,575		4,490		(2,417	)		1,445			11,093
Total revenue		727,497		691,544		(401,947	)		1,445			1,018,539
Gross profit:
Merchandise		70,673		—		—			—			70,673
Fuel		45,863		7,499		—			—			53,362
Other		7,575		2,175		(281	)		398			9,867
Total gross profit		124,111		9,674		(281	)		398			133,902
Selling, general and administrative		83,331		3,972		(281	)		3,025			90,047
Depreciation, amortization and accretion		10,030		1,030		—			305			11,365
Other operating expenses (income)		507		89		—			(18	)		578
Operating income (loss)	$	30,243	$	4,583	$	—		$	(2,914	)	$	31,912
Gallons		185,192		315,312		(186,483	)		—			314,021
Gross capital expenditures	$	12,561	$	797	$	—		$	—		$	13,358

Segment Financial Data for the Three Months Ended July 3, 2011

(dollars and gallons in thousands)

	Retail Segment		Wholesale Segment		Intercompany Eliminations			All Other			Totals
Revenue:
Merchandise	$	226,441	$	—	$	—		$	—		$	226,441
Fuel		724,993		1,008,380		(596,311	)		—			1,137,062
Other		8,888		6,204		(2,629	)		422			12,885
Total revenue		960,322		1,014,584		(598,940	)		422			1,376,388
Gross profit:
Merchandise		77,094		—		—			—			77,094
Fuel		60,719		9,023		—			—			69,742
Other		8,887		3,168		(275	)		314			12,094
Total gross profit		146,700		12,191		(275	)		314			158,930
Selling, general and administrative		91,695		4,790		(275	)		2,895			99,105
Depreciation, amortization and accretion		9,855		1,294		—			336			11,485
Other operating expenses (income)		628		52		—			—			680
Operating income (loss)	$	44,522	$	6,055	$	—		$	(2,917	)	$	47,660
Gallons		194,538		322,641		(194,571	)		—			322,608
Gross capital expenditures	$	32,565	$	1,617	$	—		$	—		$	34,182

Segment Financial Data for the Six Months Ended July 4, 2010

(dollars and gallons in thousands)

	Retail Segment		Wholesale Segment		Intercompany Eliminations			All Other			Totals
Revenue:
Merchandise	$	399,314	$	—	$	—		$	—		$	399,314
Fuel		990,265		1,324,873		(779,154	)		—			1,535,984
Other		15,251		9,048		(4,622	)		1,689			21,366
Total revenue		1,404,830		1,333,921		(783,776	)		1,689			1,956,664
Gross profit:
Merchandise		133,056		—		—			—			133,056
Fuel		66,154		12,527		—			—			78,681
Other		15,251		4,384		(428	)		579			19,786
Total gross profit		214,461		16,911		(428	)		579			231,523
Selling, general and administrative		162,148		7,282		(428	)		5,502			174,504
Depreciation, amortization and accretion		19,807		2,247		—			519			22,573
Other operating expenses (income)		773		89		—			(20	)		842
Operating income (loss)	$	31,733	$	7,293	$	—		$	(5,422	)	$	33,604
Gallons		368,260		616,272		(367,430	)		—			617,102
Gross capital expenditures	$	21,263	$	1,301	$	—		$	—		$	22,564

Segment Financial Data for the Six Months Ended July 3, 2011

(dollars and gallons in thousands)

	Retail Segment		Wholesale Segment		Intercompany Eliminations			All Other			Totals
Revenue:
Merchandise	$	429,458	$	—	$	—		$	—		$	429,458
Fuel		1,343,113		1,857,099		(1,108,669	)		—			2,091,543
Other		17,428		11,916		(5,605	)		781			24,520
Total revenue		1,789,999		1,869,015		(1,114,274	)		781			2,545,521
Gross profit:
Merchandise		146,105		—		—			—			146,105
Fuel		90,032		15,230		—			—			105,262
Other		17,428		5,797		(550	)		607			23,282
Total gross profit		253,565		21,027		(550	)		607			274,649
Selling, general and administrative		178,187		8,996		(550	)		5,961			192,594
Depreciation, amortization and accretion		19,157		2,590		—			640			22,387
Other operating expenses (income)		1,210		152		—			(53	)		1,309
Operating income (loss)	$	55,011	$	9,289	$	—		$	(5,941	)	$	58,359
Gallons		385,840		633,738		(384,661	)		—			634,917
Gross capital expenditures	$	64,987	$	3,298	$	—		$	—		$	68,285