Discontinued Operations

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Assets Held for Sale

Discontinued Operations

On May 14, 2021, we completed the sale of Speedway, our company-owned and operated retail transportation fuel and convenience store business, to 7-Eleven for cash proceeds of approximately $21.38 billion. After-tax proceeds were approximately $17.22 billion. This transaction resulted in a pretax gain of $11.68 billion ($8.02 billion after income taxes) after deducting the book value of the net assets and certain other adjustments.

The transaction provided for adjustments for working capital and other miscellaneous items, which were finalized with 7-Eleven in the fourth quarter of 2022, resulting in an additional pretax gain of $60 million.

Results of operations for Speedway are reflected through the close of the sale. The following table presents Speedway results and the gain on sale as reported in income from discontinued operations, net of tax, within our consolidated statements of income.

(Millions of dollars)	2022		2021		2020
Revenues, other income and net gain on disposal of assets:
Revenues and other income	$	—	$	8,420	$	19,919
Net gain on disposal of assets	60		11,682		1
Total revenues, other income and net gain on disposal of assets	60		20,102		19,920
Costs and expenses:
Cost of revenues (excludes items below)	—		7,654		17,573
Depreciation and amortization	—		3		244
Selling, general and administrative expenses	—		121		323
Other taxes	—		75		193
Total costs and expenses	—		7,853		18,333
Income from operations	60		12,249		1,587
Net interest and other financial costs	—		6		20
Income before income taxes	60		12,243		1,567
Provision (benefit) for income taxes	(12)		3,795		362
Income from discontinued operations, net of tax	$	72	$	8,448	$	1,205

Fuel Supply Agreements

During the second quarter of 2021, we entered into various 15-year fuel supply agreements through which we continue to supply fuel to Speedway.