CrossAmerica Partners LP Goodwill & Intangibles Disclosure
Note 11. GOODWILL
Changes in goodwill during 2020 and 2019 consisted of the following (in thousands):
|
|
|
Wholesale Segment |
|
|
Retail Segment |
|
|
Consolidated |
|
|||
|
Balance at December 31, 2018 |
|
$ |
69,687 |
|
|
$ |
19,077 |
|
|
$ |
88,764 |
|
|
Reassignment |
|
|
4,451 |
|
|
|
(4,451 |
) |
|
|
— |
|
|
Balance at December 31, 2019 and 2020 |
|
$ |
74,138 |
|
|
$ |
14,626 |
|
|
$ |
88,764 |
|
As a result of converting our remaining company-operated sites to dealer-operated sites in the third quarter of 2019 and the resulting reduction in future cash flows in the Retail segment and the expected increase in future cash flows that will be received by the Wholesale segment subsequent to the date of conversion, $4.5 million of the goodwill originally assigned to the Retail segment was reassigned to the Wholesale segment. See Note 24 for additional information on the conversion of our company operated sites to dealer operated sites.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2020 | Mar 2, 2021 | Showing above |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 19, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.