Note 5. Sale and Disposition of Assets

The following table provides the Partnership’s (gain) loss on sale and dispositions of assets for the years ended December 31 (in thousands):

Periodic Divestiture of Gasoline Stations

As part of the routine course of operations in the GDSO segment, the Partnership may periodically divest certain gasoline stations. The gain or loss on the sale, representing cash proceeds less net book value of assets and recognized liabilities at disposition, net of settlement and dispositions costs, is recorded in net loss on sale and disposition of assets in the accompanying consolidated statements of operations and amounted to losses of $0.4 million, $1.1 million and $0.7 million for the years ended December 31, 2016, 2015 and 2014.

Strategic Asset Divestiture Program

The Partnership identified certain non-strategic GDSO sites that are part of its Strategic Asset Divestiture Program (the “Divestiture Program”). 

Mirabito Disposition—On August 22, 2016, Drake Petroleum Company, Inc., an indirect wholly owned subsidiary of the Partnership, completed its sale to Mirabito Holdings, Inc. (“Mirabito”) of 30 gasoline stations and convenience stores located in New York and Pennsylvania (the “Drake Sites”) for an aggregate total cash purchase price of approximately $40.0 million (the “Mirabito Disposition”). The Drake Sites are a portion of the sites that were acquired by the Partnership in connection with the acquisition of Warren on January 7, 2015 (see Note 18). 

The gain or loss on the sale, representing cash proceeds less net book value of assets and recognized liabilities at disposition, net of settlement and dispositions costs, is recorded in net loss on sale and disposition of assets in the accompanying consolidated statements of operations and amounted to a $3.9 million loss for the year ended December 31, 2016, including the derecognition of $12.8 million of GDSO goodwill.

Real Estate Firm Coordinated Sale—The Partnership has retained a real estate firm that is coordinating the sale of approximately 80 non-strategic GDSO sites. As of December 31, 2016, the Partnership completed the sale of 29 of these sites. The gain or loss on the sale, representing cash proceeds less net book value of assets and recognized liabilities at disposition, net of settlement and dispositions costs, is recorded in net loss on sale and disposition of assets in the accompanying consolidated statement of operations and amounted to a $1.1 million loss for the year ended December 31, 2016, including the derecognition of $5.1 million of GDSO goodwill. As of December 31, 2016, the criteria to be presented as held for sale was met for 30 of the remaining sites. Through February 2017, such criteria was met for an additional 9 sites (see Note 24).

Loss on Assets Held for Sale

In conjunction with the periodic divestiture of gasoline stations and the sale of sites within the Divestiture Program, the Partnership may classify certain gasoline station assets as held for sale.

The Partnership classified 17 sites and 15 sites as held for sale at December 31, 2016 and 2015, respectively, which are periodic divestiture gasoline station sites. The Partnership recorded impairment charges related to these assets held for sale in the amount of $5.6 million, $0.2 million and $1.5 million for the year ended December 31, 2016, 2015 and 2014, respectively, which are included in net loss on sale and disposition of assets in the accompanying consolidated statements of operations. 

Additionally, the Partnership classified 30 sites associated with the real estate firm coordinated sale discussed above as held for sale at December 31, 2016. The Partnership recorded impairment charges related to these assets held for sale in the amount of $9.4 million for the year ended December 31, 2016, which are included in net loss on sale and disposition of assets in the accompanying consolidated statement of operations.

Assets held for sale of $17.5 million and $7.4 million at December 31, 2016 and 2015, respectively, are included in property and equipment in the accompanying balance sheets.  Assets held for sale are expected to be sold within the next 12 months.

Other

The Partnership recognizes gains and losses on the sale and disposition of other assets, including vehicles, fixtures and equipment, and the gain or loss on such other assets are included in other in the aforementioned table.