Note 21. Segment Reporting

The Partnership engages in the purchasing, selling, gathering, blending, storing and logistics of transporting petroleum and related products, including gasoline and gasoline blendstocks (such as ethanol), distillates (such as home heating oil, diesel and kerosene), residual oil, renewable fuels, crude oil and propane. The Partnership also receives revenue from convenience store and prepared food sales, rental income and sundries. The Partnership’s three operating segments are based upon the revenue sources for which discrete financial information is reviewed by the President and Chief Executive Officer, the chief operating decision maker (the “CODM”), to make key operating decisions and assess performance and include Wholesale, GDSO and Commercial.

An important measure used by the Partnership and the CODM to evaluate segment performance is product margin, which the Partnership defines as product sales minus product costs. The CODM principally uses product margin to allocate resources (including employees, property and financial or capital resources) for each segment, predominantly in the annual budget and forecasting processes. Based on the way the business is managed, components of indirect

operating costs included within selling and administrative expenses and corporate expenses are not allocated to the reportable segments.

The operating segments are also the Partnership’s reporting segments. The Commercial operating segment does not meet the quantitative metrics for disclosure as a reportable segment on a stand-alone basis as defined in accounting guidance related to segment reporting. However, the Partnership has elected to present segment disclosures for the Commercial operating segment as management believes such disclosures are helpful to the users of the Partnership’s financial information. The accounting policies of the segments are the same as those described in Note 2, “Summary of Significant Accounting Policies.”

In the Wholesale reporting segment, the Partnership engages in the logistics of selling, gathering, blending, storing and transporting refined petroleum products, gasoline blendstocks, renewable fuels, crude oil and propane. The Partnership transports these products by railcars, barges, trucks and/or pipelines pursuant to spot or long-term contracts. The Partnership sells home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene and residual oil to retail and wholesale distributors. Generally, customers use their own vehicles or contract carriers to take delivery of the gasoline, distillates and propane at bulk terminals and inland storage facilities that the Partnership owns or controls or at which it has throughput or exchange arrangements. Ethanol is shipped primarily by rail and by barge.

In the GDSO reporting segment, gasoline distribution includes sales of branded and unbranded gasoline to gasoline station operators and sub jobbers. Station operations include (i) convenience store and prepared food sales, (ii) rental income from gasoline stations leased to dealers, from commissioned agents and from cobranding arrangements and (iii) sundries (such as car wash sales and lottery and ATM commissions).

In the Commercial segment, the Partnership includes sales and deliveries to end user customers in the public sector and to large commercial and industrial end users of unbranded gasoline, home heating oil, diesel, kerosene, residual oil and bunker fuel. In the case of public sector commercial and industrial end user customers, the Partnership sells products primarily either through a competitive bidding process or through contracts of various terms. The Partnership responds to publicly issued requests for product proposals and quotes. The Partnership generally arranges for the delivery of the product to the customer’s designated location. The Commercial segment also includes sales of custom blended fuels delivered by barges or from a terminal dock to ships through bunkering activity.

Summarized financial information for the Partnership’s reportable segments for the years ended December 31 is presented in the table below (in thousands):

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

 

Wholesale Segment:

Sales

Gasoline and gasoline blendstocks

$

7,793,230

$

6,541,224

$

5,897,428

Distillates and other oils (1)

 

4,865,695

 

4,176,681

 

3,715,888

Total

$

12,658,925

$

10,717,905

$

9,613,316

Product margin

Gasoline and gasoline blendstocks

$

205,576

$

181,802

$

105,165

Distillates and other oils (1)

 

116,098

 

110,430

 

96,747

Total

$

321,674

$

292,232

$

201,912

Gasoline Distribution and Station Operations Segment:

Sales

Gasoline

$

4,237,035

$

4,807,765

$

5,268,268

Station operations (2)

 

546,655

 

565,839

 

572,266

Total

$

4,783,690

$

5,373,604

$

5,840,534

Product margin

Gasoline

$

574,052

$

578,737

$

558,516

Station operations (2)

 

271,936

 

281,745

 

276,040

Total

$

845,988

$

860,482

$

834,556

Commercial Segment:

Sales

$

1,118,806

$

1,072,057

$

1,038,324

Product margin

$

26,284

$

31,354

$

31,722

Combined sales and Product margin:

Sales

$

18,561,421

$

17,163,566

$

16,492,174

Product margin (3)

$

1,193,946

$

1,184,068

$

1,068,190

Depreciation allocated to cost of sales

 

(131,893)

 

(126,172)

 

(94,550)

Combined gross profit

$

1,062,053

$

1,057,896

$

973,640

(1)Distillates and other oils (primarily residual oil and crude oil).
(2)Station operations consist of convenience store and prepared food sales, rental income and sundries.
(3)Product margin is a non-GAAP financial measure used by management and external users of the Partnership’s consolidated financial statements to assess its business. The table above includes a reconciliation of product margin on a combined basis to gross profit, a directly comparable GAAP measure.

Approximately 465 million gallons, 470 million gallons and 435 million gallons of the GDSO segment’s sales for the years ended December 31, 2025, 2024 and 2023, respectively, were supplied from petroleum products and renewable fuels sourced by the Wholesale segment. The Commercial segment’s sales were predominantly sourced by the Wholesale segment. These intra-segment sales are not reflected as sales in the Wholesale segment as they are eliminated.

The following tables provide the Partnership’s significant segment operating expenses for each reportable segment that are regularly provided to the CODM, as well as a reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements for the years ended December 31 (in thousands):

Year Ended December 31, 2025

 

  ​ ​ ​

Wholesale

  ​ ​ ​

GDSO

  ​ ​ ​

Commercial

  ​ ​ ​

Consolidated

 

Sales

$

12,658,925

$

4,783,690

$

1,118,806

$

18,561,421

Cost of products

 

12,337,251

 

3,937,702

 

1,092,522

 

17,367,475

Product margin

321,674

845,988

26,284

1,193,946

Operating expenses allocated to operating segments:

Wages and benefits (1)

45,632

118,325

163,957

Occupancy costs (2)

23,207

109,178

132,385

Transactional operating costs (3)

90,193

90,193

Maintenance (4)

49,720

43,672

93,392

Other segment operating expenses

17,962

21,561

39,523

Total operating expenses allocated to operating segments

$

136,521

$

382,929

$

519,450

Operating expenses not allocated to operating segments:

Depreciation allocated to cost of sales

 

 

 

 

131,893

Selling, general and administrative expenses

305,702

Amortization expense

5,332

Net gain on sale and disposition of assets

(3,326)

Long-lived asset impairment

231

Total operating expenses not allocated to operating expenses

439,832

Operating income

234,664

Income from equity method investments

4,509

Interest expense

(137,162)

Loss on early extinguishment of debt

(2,971)

Income tax expense

(1,063)

Net income

$

97,977

(1)Includes salary and wages, payroll taxes, fringe benefits and other employee expenses
(2)Includes rent and leases expenses, property taxes and utilities
(3)Includes commissions and credit card fees
(4)Includes maintenance and repairs, environmental and seasonal site maintenance expenses

Year Ended December 31, 2024

 

  ​ ​ ​

Wholesale

  ​ ​ ​

GDSO

  ​ ​ ​

Commercial

  ​ ​ ​

Consolidated

 

Sales

$

10,717,905

$

5,373,604

$

1,072,057

$

17,163,566

Cost of products

 

10,425,673

 

4,513,122

 

1,040,703

 

15,979,498

Product margin

292,232

860,482

31,354

1,184,068

Operating expenses allocated to operating segments:

Wages and benefits (1)

44,775

121,325

166,100

Occupancy costs (2)

 

22,927

 

105,585

 

 

128,512

Transactional operating costs (3)

92,938

92,938

Maintenance (4)

46,873

43,005

89,878

Other segment operating expenses

16,439

21,460

37,899

Total operating expenses allocated to operating segments

$

131,014

$

384,313

$

515,327

Operating expenses not allocated to operating segments:

Depreciation allocated to cost of sales

126,172

Selling, general and administrative expenses

292,073

Amortization expense

8,275

Net gain on sale and disposition of assets

(9,494)

Long-lived asset impairment

492

Total operating expenses not allocated to operating expenses

417,518

Operating income

251,223

Loss from equity method investments

(1,514)

Interest expense

(134,773)

Income tax expense

(4,609)

Net income

$

110,327

(1)Includes salary and wages, payroll taxes, fringe benefits and other employee expenses
(2)Includes rent and leases expenses, property taxes and utilities
(3)Includes commissions and credit card fees
(4)Includes maintenance and repairs, environmental and seasonal site maintenance expenses

Year Ended December 31, 2023

 

  ​ ​ ​

Wholesale

  ​ ​ ​

GDSO

  ​ ​ ​

Commercial

  ​ ​ ​

Consolidated

 

Sales

$

9,613,316

$

5,840,534

$

1,038,324

$

16,492,174

Cost of products

9,411,404

5,005,978

1,006,602

15,423,984

Product margin

201,912

834,556

31,722

1,068,190

Operating expenses allocated to operating segments:

Wages and benefits (1)

22,717

122,346

145,063

Occupancy costs (2)

13,515

103,118

116,633

Transactional operating costs (3)

94,518

94,518

Maintenance (4)

17,936

45,320

63,256

Other segment operating expenses

8,760

22,397

31,157

Total operating expenses allocated to operating segments

$

62,928

$

387,699

$

450,627

Operating expenses not allocated to operating segments:

Depreciation allocated to cost of sales

94,550

Selling, general and administrative expenses

273,733

Amortization expense

8,136

Net gain on sale and disposition of assets

(2,626)

Total operating expenses not allocated to operating expenses

373,793

Operating income

243,770

Income from equity investments

2,503

Interest expense

(85,631)

Income tax expense

(8,136)

Net income

$

152,506

(1)Includes salary and wages, payroll taxes, fringe benefits and other employee expenses
(2)Includes rent and leases expenses, property taxes and utilities
(3)Includes commissions and credit card fees
(4)Includes maintenance and repairs environmental and seasonal site maintenance expenses

None of the Partnership’s customers accounted for greater than 10% of total sales for years ended December 31, 2025, 2024 and 2023.

The Partnership’s foreign assets and foreign sales were immaterial as of and for the years ended December 31, 2025, 2024 and 2023.

Segment Assets

The Partnership’s terminal assets are allocated to the Wholesale segment, and its retail gasoline stations are allocated to the GDSO segment. Due to the commingled nature and uses of the remainder of the Partnership’s assets, it is not reasonably possible for the Partnership to allocate these assets among its reportable segments.

The table below presents total assets by reportable segment at December 31 (in thousands):

 

Wholesale

 

GDSO

 

Commercial

 

Unallocated (1)

 

Total

December 31, 2025

  ​ ​

$

1,329,899

  ​ ​

$

1,825,524

  ​ ​

$

  ​ ​

$

695,294

  ​ ​

$

3,850,717

December 31, 2024

  ​ ​

$

1,333,102

  ​ ​

$

1,859,417

  ​ ​

$

  ​ ​

$

595,679

  ​ ​

$

3,788,198

(1)Includes the Partnership’s equity method investments (see Note 17).

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024
2022Feb 27, 2023
2021Feb 28, 2022
2020Mar 5, 2021
2019Mar 6, 2020
2018Mar 8, 2019
2017Mar 9, 2018
2016Mar 10, 2017
2015Feb 29, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.