Cover Page
Cover Page - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Feb. 24, 2020 | Jun. 28, 2019 | Dec. 31, 2018 | |
Entity Information [Line Items] | ||||
Entity Registrant Name | TravelCenters of America Inc. /MD/ | |||
Entity Central Index Key | 0001378453 | |||
Amendment Flag | false | |||
Current Fiscal Year End Date | --12-31 | |||
Entity Small Business | true | |||
Document Fiscal Year Focus | 2019 | |||
Document Fiscal Period Focus | FY | |||
Document Type | 10-K | |||
Document Annual Report | true | |||
Document Period End Date | Dec. 31, 2019 | |||
Document Transition Report | false | |||
Entity File Number | 001-33274 | |||
Entity Incorporation, State or Country Code | MD | |||
Entity Tax Identification Number | 20-5701514 | |||
Entity Address, Address Line One | 24601 Center Ridge Road | |||
Entity Address, City or Town | Westlake | |||
Entity Address, State or Province | OH | |||
Entity Address, Postal Zip Code | 44145-5639 | |||
City Area Code | 440 | |||
Local Phone Number | 808-9100 | |||
Title of 12(b) Security | Shares of Common Stock, $0.001 Par Value Per Share | |||
Trading Symbol | TA | |||
Security Exchange Name | NASDAQ | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Accelerated Filer | |||
Entity Emerging Growth Company | false | |||
Entity Shell Company | false | |||
Entity Listing, Par Value Per Share | $ 0.001 | |||
Entity Public Float | $ 121.6 | |||
Closing price per share of common stock (USD per share) | $ 18.10 | |||
Common stock held directly by, or by affiliates of, the directors and the officers of the registrant (in shares) | 685,234 | |||
Number of shares of common stock outstanding owned (in shares) | 8,307,000 | 8,080,000 | ||
Entity Common Stock, Shares Outstanding | 8,306,579 | |||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Certain information required in Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K is incorporated by reference to our definitive Proxy Statement for our 2020 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A, or our definitive Proxy Statement. | |||
SVC | Principal landlord and largest stockholder | ||||
Entity Information [Line Items] | ||||
Number of shares of common stock outstanding owned (in shares) | 684,000 | 684,000 | ||
8.25% Senior Notes due 2028 | ||||
Entity Information [Line Items] | ||||
Title of 12(b) Security | 8.25% Senior Notes due 2028 | |||
Trading Symbol | TANNI | |||
Security Exchange Name | NASDAQ | |||
8.00% Senior Notes due 2029 | ||||
Entity Information [Line Items] | ||||
Title of 12(b) Security | 8.00% Senior Notes due 2029 | |||
Trading Symbol | TANNL | |||
Security Exchange Name | NASDAQ | |||
8.00% Senior Notes due 2030 | ||||
Entity Information [Line Items] | ||||
Title of 12(b) Security | 8.00% Senior Notes due 2030 | |||
Trading Symbol | TANNZ | |||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 17,206 | $ 314,387 |
Accounts receivable (net of allowance for doubtful accounts of $1,083 and $959 as of December 31, 2019 and 2018, respectively) | 173,496 | 97,449 |
Inventory | 196,611 | 196,721 |
Other current assets | 32,456 | 35,119 |
Total current assets | 419,769 | 643,676 |
Property and equipment, net | 868,503 | 628,537 |
Operating lease assets | 1,817,998 | 0 |
Goodwill | 25,259 | 25,259 |
Intangible assets, net | 20,707 | 22,887 |
Other noncurrent assets | 78,659 | 121,749 |
Total assets | 3,230,895 | 1,442,108 |
Current liabilities: | ||
Accounts payable | 147,440 | 120,914 |
Current operating lease liabilities | 104,070 | 0 |
Current SVC Leases liabilities | 0 | 42,109 |
Other current liabilities | 138,455 | 125,668 |
Total current liabilities | 389,965 | 288,691 |
Long term debt, net | 329,321 | 320,528 |
Noncurrent operating lease liabilities | 1,880,188 | 0 |
Noncurrent SVC Leases liabilities | 0 | 353,756 |
Other noncurrent liabilities | 58,885 | 28,741 |
Total liabilities | 2,658,359 | 991,716 |
Stockholders' equity: | ||
Common stock, $0.001 par value, 16,000 and 8,674 shares of common stock authorized as of December 31, 2019 and 2018, respectively, and 8,307 and 8,080 shares of common stock issued and outstanding as of December 31, 2019 and 2018, respectively | 8 | 8 |
Additional paid-in capital | 698,402 | 695,307 |
Accumulated other comprehensive (loss) income | (172) | 355 |
Accumulated deficit | (127,185) | (246,773) |
Total TA stockholders' equity | 571,053 | 448,897 |
Noncontrolling interest | 1,483 | 1,495 |
Total stockholders' equity | 572,536 | 450,392 |
Total liabilities and stockholders' equity | $ 3,230,895 | $ 1,442,108 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | ||
Total revenues | $ 6,117,359 | $ 6,232,215 |
Cost of goods sold (excluding depreciation): | ||
Total cost of goods sold | 4,594,769 | 4,786,169 |
Site level operating expense | 943,810 | 914,730 |
Selling, general and administrative expense | 155,474 | 137,945 |
Real estate rent expense | 257,762 | 283,476 |
Depreciation and amortization expense | 100,260 | 83,179 |
Income from operations | 65,284 | 26,716 |
Interest expense, net | 28,356 | 29,003 |
Other (income) expense, net | (880) | 2,060 |
Income (loss) before income taxes and discontinued operations | 37,808 | (4,347) |
(Provision) benefit for income taxes | (4,339) | 1,574 |
Income (loss) from continuing operations | 33,469 | (2,773) |
Loss from discontinued operations, net of taxes | 0 | (117,631) |
Net income (loss) | 33,469 | (120,404) |
Less: net income for noncontrolling interest | 124 | 149 |
Net income (loss) attributable to common stockholders | 33,345 | (120,553) |
Other comprehensive loss, net of taxes: | ||
Foreign currency gain (loss), net of taxes of $61 and $(104), respectively | 46 | (156) |
Interest in equity investee's unrealized losses on investments | (573) | (69) |
Other comprehensive loss attributable to common stockholders | (527) | (225) |
Comprehensive income (loss) attributable to common stockholders | $ 32,818 | $ (120,778) |
Net income (loss) per share of common stock attributable to common stockholders: | ||
Basic and diluted from continuing operations (in USD per share) | $ 4.12 | $ (0.37) |
Basic and diluted from discontinued operations (in USD per share) | 0 | (14.72) |
Basic and diluted (in USD per share) | $ 4.12 | $ (15.09) |
Fuel | ||
Revenues: | ||
Total revenues | $ 4,247,069 | $ 4,395,731 |
Cost of goods sold (excluding depreciation): | ||
Total cost of goods sold | 3,868,351 | 4,075,704 |
Nonfuel | ||
Revenues: | ||
Total revenues | 1,856,147 | 1,820,341 |
Cost of goods sold (excluding depreciation): | ||
Total cost of goods sold | 726,418 | 710,465 |
Rent and royalties from franchisees | ||
Revenues: | ||
Total revenues | $ 14,143 | $ 16,143 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 33,469 | $ (120,404) |
Less: loss from discontinued operations, net of taxes | 0 | (117,631) |
Income (loss) from continuing operations | 33,469 | (2,773) |
Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities of continuing operations: | ||
Noncash rent credits, net | (21,406) | (14,799) |
Depreciation and amortization expense | 100,260 | 83,179 |
Deferred income tax provision | 5,710 | 403 |
Changes in operating assets and liabilities, net of effects of business acquisitions: | ||
Accounts receivable | (76,636) | 27,340 |
Inventory | 154 | (9,102) |
Other assets | 5,152 | 1,384 |
Accounts payable and other liabilities | 26,698 | (31,932) |
Other, net | 9,066 | 19,558 |
Net cash provided by operating activities of continuing operations | 82,467 | 73,258 |
Net cash provided by operating activities of discontinued operations | 0 | 8,348 |
Net cash provided by operating activities | 82,467 | 81,606 |
Cash flows from investing activities: | ||
Proceeds from sale of convenience stores business, net | 0 | 310,496 |
Proceeds from asset sales to SVC | 0 | 55,829 |
Proceeds from other asset sales | 2,919 | 0 |
Acquisition of travel centers from SVC | (309,637) | 0 |
Distribution from equity investee | 5,756 | 0 |
Capital expenditures | (83,955) | (144,781) |
Acquisitions of businesses, net of cash acquired | 0 | (10,482) |
Investment in equity investee | (1,500) | (2,859) |
Net cash (used in) provided by investing activities of continuing operations | (386,417) | 208,203 |
Net cash used in investing activities of discontinued operations | 0 | (8,904) |
Net cash (used in) provided by investing activities | (386,417) | 199,299 |
Cash flows from financing activities: | ||
Proceeds from sale leaseback transactions with SVC | 0 | 517 |
Sale leaseback financing obligation payments | 0 | (971) |
Acquisition of treasury stock from employees | (346) | (1,744) |
Distributions to noncontrolling interest | (136) | (101) |
Revolving Credit Facility borrowings | 7,900 | 0 |
Other, net | (745) | (103) |
Net cash provided by (used in) financing activities | 6,673 | (2,402) |
Effect of exchange rate changes on cash | 96 | (198) |
Net (decrease) increase in cash and cash equivalents | (297,181) | 278,305 |
Cash and cash equivalents at the beginning of the year | 314,387 | 36,082 |
Cash and cash equivalents at the end of the year | 17,206 | 314,387 |
Supplemental disclosure of cash flow information: | ||
Interest paid (including rent classified as interest and net of capitalized interest) | 27,819 | 29,250 |
Income taxes refunded | $ (1,670) | $ (228) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Treasury Stock | Total TA Stockholders' Equity | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2017 | 7,997 | |||||||
Beginning balance at Dec. 31, 2017 | $ 566,495 | $ 8 | $ 690,680 | $ 580 | $ (126,220) | $ 0 | $ 565,048 | $ 1,447 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Grants under share award plan and stock based compensation, net (in shares) | 83 | |||||||
Grants under share award plan and stock based compensation, net | 2,883 | $ 0 | 2,883 | |||||
Grants under share award plan and stock based compensation, net | 4,627 | |||||||
Grants under share award plan and stock based compensation, net | 1,744 | (1,744) | ||||||
Retirement of treasury stock | 1,744 | 1,744 | 1,744 | |||||
Distributions to noncontrolling interest | (101) | (101) | ||||||
Other comprehensive loss, net of taxes | (225) | (225) | (225) | |||||
Net (loss) income | $ (120,404) | (120,553) | (120,553) | 149 | ||||
Ending balance (in shares) at Dec. 31, 2018 | 8,080 | 8,080 | ||||||
Ending balance at Dec. 31, 2018 | $ 450,392 | $ 8 | 695,307 | 355 | (246,773) | 0 | 448,897 | 1,495 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Grants under share award plan and stock based compensation, net (in shares) | 227 | |||||||
Grants under share award plan and stock based compensation, net | 2,749 | $ 0 | 2,749 | |||||
Grants under share award plan and stock based compensation, net | 3,095 | |||||||
Grants under share award plan and stock based compensation, net | 346 | (346) | ||||||
Retirement of treasury stock | 346 | 346 | 346 | |||||
Distributions to noncontrolling interest | (136) | (136) | ||||||
Other comprehensive loss, net of taxes | (527) | (527) | (527) | |||||
Cumulative effect of adoption of ASC 842, net of taxes | 86,243 | 86,243 | 86,243 | |||||
Net (loss) income | $ 33,469 | 33,345 | 33,345 | 124 | ||||
Ending balance (in shares) at Dec. 31, 2019 | 8,307 | 8,307 | ||||||
Ending balance at Dec. 31, 2019 | $ 572,536 | $ 8 | $ 698,402 | $ (172) | $ (127,185) | $ 0 | $ 571,053 | $ 1,483 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,083 | $ 959 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 16,000,000 | 8,674,000 |
Common stock, shares issued | 8,307,000 | 8,080,000 |
Common stock, shares outstanding | 8,307,000 | 8,080,000 |
Consolidated Statements of Op_2
Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Foreign currency gain (loss), taxes | $ 61 | $ (104) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies General Information and Basis of Presentation TravelCenters of America Inc., which we refer to as the Company or we, us and our, is a Maryland corporation. Prior to August 1, 2019, we were organized as a Delaware limited liability company. On August 1, 2019, in conjunction with our conversion from a Delaware limited liability company to a Maryland corporation, we assigned a $0.001 par value per share to our common stock and the excess over the par value has been classified as additional paid-in capital in our consolidated balance sheets. In addition, on August 1, 2019, we completed a reverse stock split of our outstanding shares of common stock pursuant to which every five shares of our issued and outstanding common stock were exchanged for one share of our common stock. The common stock information included within the financial statements and the notes thereto has been retrospectively adjusted to reflect the par value and the reverse stock split for all periods and dates presented. See Note 10 for more information about our reverse stock split. As of December 31, 2019, we operated or franchised 306 travel centers, standalone truck service facilities and standalone restaurants. Our customers include trucking fleets and their drivers, independent truck drivers, highway and local motorists and casual diners. We also collect rents, royalties and other fees from our tenants and franchisees. As of December 31, 2019, our business included 261 travel centers in 44 states in the United States and the province of Ontario, Canada, primarily along the U.S. interstate highway system, operated primarily under the "TravelCenters of America," "TA," "TA Express," "Petro Stopping Centers" and "Petro" brand names. Of our 261 travel centers at December 31, 2019, we owned 51, we leased 181, we operated two for a joint venture in which we owned a noncontrolling interest and 27 were owned or leased from others by our franchisees. We operated 232 of our travel centers and franchisees operated 29 travel centers, including two we leased to franchisees. Our travel centers offer a broad range of products and services, including diesel fuel and gasoline, as well as nonfuel products and services such as truck repair and maintenance services, full service restaurants, quick service restaurants and various customer amenities. As of December 31, 2019, our business included two standalone truck service facilities operated under the "TA Truck Service" brand name. Of our two standalone truck service facilities, we leased one and owned one. Our standalone truck service facilities offer extensive maintenance and emergency repair and roadside services to large trucks. As of December 31, 2019, our business included 43 standalone restaurants in 12 states in the United States operated primarily under the "Quaker Steak & Lube," or QSL, brand name. Of our 43 standalone restaurants at December 31, 2019, we operated 16 restaurants (six we owned, nine we leased and one we operated for a joint venture in which we owned a noncontrolling interest) and 27 were owned or leased from others and operated by our franchisees. We manage our business as one segment. We make specific disclosures concerning fuel and nonfuel products and services because it facilitates our discussion of trends and operational initiatives within our business and industry. We have a single travel center located in a foreign country, Canada, that we do not consider material to our operations. On December 5, 2018, we sold 225 convenience stores, one standalone restaurant and certain related assets, or our convenience stores business. As a result, the results of our convenience stores business are reported as discontinued operations for the year ended December 31, 2018, in our consolidated statements of operations and comprehensive income (loss). See Note 4 for more information about our discontinued operations. Our consolidated financial statements include the accounts of TravelCenters of America Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated. We use the equity method of accounting for investments in entities when we have the ability to significantly influence, but not control, the investee's operating and financial policies, typically when we own 20% to 50% of the investee's voting stock. See Note 12 for more information about our equity investments. The preparation of financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant Accounting Policies Revenue Recognition. Revenues consist of fuel revenues, nonfuel revenues and rent and royalties from franchisees. See Note 2 for more information about our revenues. Accounts Receivable and Allowance for Doubtful Accounts. We record trade accounts receivable at the invoiced amount and those amounts do not bear interest. The recorded allowance for doubtful accounts is our best estimate of the amount of probable losses in our existing accounts receivable. We base the allowance on historical payment patterns, aging of accounts receivable, periodic review of customers' financial condition and actual write off history. We charge off account balances against the allowance when we believe it is probable the receivable will not be collected. As of December 31, 2019, our accounts receivable balance included $70,229 related to the federal biodiesel blenders' tax credit that the U.S. government retroactively reinstated in 2019 for 2018 and 2019. Inventory. We state our inventory at the lower of cost or net realizable value. We determine cost principally on the weighted average cost method. We maintain reserves for the estimated amounts of obsolete and excess inventory. These estimates are based on unit sales histories and on hand inventory quantities, known market trends for inventory items and assumptions regarding factors such as future inventory needs, our ability and the related cost to return items to our suppliers and our ability to sell inventory at a discount when necessary. Property and Equipment. We record property and equipment as a result of business combinations based on their fair values as of the date of the acquisition. We record all other property and equipment at cost. We depreciate our property and equipment on a straight line basis generally over the following estimated useful lives of the assets: Buildings and site improvements 10 to 40 years Machinery and equipment 3 to 15 years Furniture and fixtures 5 to 10 years We depreciate leasehold improvements over the shorter of the lives shown above or the remaining term of the underlying lease. Goodwill and Intangible Assets. In a business combination we are required to record assets and liabilities acquired, including those intangible assets that arise from contractual or other legal rights or are otherwise capable of being separated or divided from the acquired entity, based on the fair values of the acquired assets and liabilities. Any excess of acquisition cost over the fair value of the acquired net identifiable assets is recognized as goodwill. We amortize the recorded costs of intangible assets with finite lives on a straight line basis over their estimated lives, principally the terms of the related contractual agreements. See Note 6 for more information about our goodwill and intangible assets. Impairment. We review definite lived assets for indicators of impairment during each reporting period. We recognize impairment charges when (i) the carrying value of a long lived asset or asset group to be held and used in the business is not recoverable and exceeds its fair value and (ii) when the carrying value of a long lived asset or asset group to be disposed of exceeds the estimated fair value of the asset less the estimated cost to sell the asset. Our estimates of fair value are based on our estimates of likely market participant assumptions, including our current expectations for projected fuel sales volume, nonfuel revenues, fuel and nonfuel gross margins, site level operating expense and real estate rent expense. The discount rate is used to measure the present value of projected future cash flows and is set at a rate we believe is likely to be used by a market participant using a weighted average cost of capital method that considers market and industry data as well as our specific risk factors. The weighted average cost of capital is our estimate of the overall after tax rate of return required by equity and debt holders of a business enterprise. We use a number of assumptions and methods in preparing valuations underlying impairment tests including estimates of future cash flows and discount rates, and in some instances we may obtain third party appraisals. We recognize impairment charges in the period during which the circumstances surrounding an asset or asset group to be held and used have changed such that the carrying value is no longer recoverable, or during which a commitment to a plan to dispose of the asset or asset group is made. We perform our impairment analysis for substantially all of our property and equipment and operating lease assets at the individual site level because that is the lowest level of asset and liability groupings for which the cash flows are largely independent of the cash flows of other assets and liabilities. During 2019, based on our evaluation of certain low performing owned and leased standalone restaurants, we incurred impairment charges of $2,369 to our property and equipment and $579 to our operating lease assets. We assess intangible assets with definite lives for impairment annually or whenever events or changes in circumstances warrant a revision to the remaining period of amortization. Definite lived intangible assets primarily include our agreements with franchisees. For 2019, definite lived intangible assets were assessed using a qualitative analysis that was performed by assessing certain trends and factors, including actual sales, collection of royalties from franchisees and any changes in the manner in which the assets were used that could impact the values of the assets. During 2019, we did not record any impairment charges related to, or recognize a revision to the remaining period of amortization of, our definite lived intangible assets. We evaluate goodwill and indefinite lived intangible assets for impairment annually, or whenever events or changes in circumstances indicate the carrying amount may not be recoverable, using either a quantitative or qualitative analysis. Indefinite lived intangible assets consisted of trademarks and their fair value was determined using a relief from royalty method. We subject goodwill and indefinite lived intangible assets to further evaluation and recognize impairment charges when events and circumstances indicate the carrying value of the goodwill or indefinite lived intangible asset exceeds the fair market value of the asset. We evaluate indefinite lived intangible assets for impairment as of November 30, or more frequently if the circumstances warrant. During 2019, indefinite lived intangible assets were assessed using a qualitative analysis that was performed by assessing certain trends and factors, including actual sales and operating profit margins, discount rates, industry data and other relevant qualitative factors. These trends and factors were compared to, and based on, the assumptions used in the most recent quantitative assessment. During 2019, we did not record any impairment charges related to our indefinite lived intangible assets. We evaluate goodwill for impairment at the reporting unit level as of July 31, or more frequently if the circumstances warrant. We have two reporting units, which included our travel centers business and our QSL business, as of December 31, 2019. With respect to goodwill, if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we perform a goodwill impairment test to measure the amount of impairment to be recognized, if any. As of July 31, 2019, our annual goodwill impairment test for the travel centers and QSL reporting units was performed using a qualitative analysis, which included evaluating financial trends and industry and market conditions and assessing the reasonableness of the assumptions used in the most recent quantitative analysis, including comparing actual results to the projections used in the quantitative analysis. Based on our analyses, we concluded that as of July 31, 2019, our goodwill in those reporting units was not impaired. Stock Based Employee Compensation. We have historically granted awards of our shares of common stock under our share award plans. Stock awards issued to our Directors vest immediately. Stock awards made to others vest in five Environmental Remediation. We record remediation charges and penalties when the obligation to remediate is probable and the amount of associated costs are reasonably determinable. We include remediation expense within site level operating expense in our consolidated statements of operations and comprehensive income (loss). Generally, the timing of remediation expense recognition coincides with completion of a feasibility study or the commitment to a formal plan of action. Accrued liabilities related to environmental matters are recorded on an undiscounted basis because of the uncertainty associated with the timing of the related future payments. In our consolidated balance sheets, the accrual for environmental matters is included in other noncurrent liabilities, with the amount estimated to be expended within the subsequent 12 months included in other current liabilities. We recognize a receivable for estimated future environmental costs that we may be reimbursed for within other noncurrent assets in our consolidated balance sheets. Self Insurance Accruals. For insurance programs for which we pay deductibles and for which we are partially self insured up to certain stop loss amounts, we establish accruals for both estimated losses on known claims and potential claims incurred but not reported, based on claims histories and using actuarial methods. In our consolidated balance sheets, the accrual for self- insurance costs is included in other noncurrent liabilities, with the amount estimated to be expended within the subsequent 12 months included in other current liabilities. Asset Retirement Obligations. We recognize the future costs for our obligations related to the removal of our underground storage tanks and certain improvements we own at leased properties over the estimated useful lives of each asset requiring removal. We record a liability for the fair value of an asset retirement obligation with a corresponding increase to the carrying value of the related long lived asset at the time such an asset is installed. We base the estimated liability on our historical experiences in removing these assets, their estimated useful lives, external estimates as to the cost to remove the assets in the future and regulatory or contractual requirements. The liability is a discounted liability using a credit adjusted risk free rate. Our asset retirement obligations at December 31, 2019 and 2018, were $5,160 and $2,478, respectively, and are presented in other noncurrent liabilities in our consolidated balance sheets. Leasing Transactions. Leasing transactions are a material part of our business. We have lease agreements covering many of our properties, as well as various equipment, with the most significant leases being our five leases with Service Properties Trust (formerly known as Hospitality Properties Trust), or SVC. We recognize operating lease assets and liabilities for all leases with an initial term greater than 12 months. Leases with an initial term of 12 months or less are not recognized in our consolidated balance sheets. Our operating lease liabilities represent the present value of our unpaid lease payments. The discount rate used to derive the present value of unpaid lease payments is based on the rates implicit in our leases with SVC and our incremental borrowing rate for all other leases. Certain of our leases include renewal options and purchase options. Renewal periods are included in calculating our operating lease assets and liabilities when they are reasonably certain. We recognize rent under operating leases without scheduled rent increases as an expense over the lease term as it becomes payable. Certain operating leases specify scheduled rent increases over the lease term or other lease payments that are not scheduled evenly throughout the lease term. We recognize the effects of those scheduled rent increases in rent expense over the lease term on an average, or straight line, basis, which reduces our operating lease assets. The rent payments resulting from our sales to SVC of improvements to the properties we lease from SVC are contingent rent. We recognize the expense related to this contingent rent evenly throughout the remaining lease term beginning on the dates of the related sales to SVC. See Note 9 for more information about our leases with SVC and our accounting for them. Income Taxes. We establish deferred income tax assets and liabilities to reflect the future tax consequences of differences between the tax basis and financial statement basis of assets and liabilities. We reduce the measurement of deferred tax assets, if necessary, by a valuation allowance when it is more likely than not that the deferred tax asset will not be realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. We evaluate and adjust these tax positions based on changing facts and circumstances. For tax positions meeting the more likely than not threshold, the amount we recognize in the financial statements is the largest benefit that we estimate has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. See Note 11 for more information about our income taxes. Reclassifications. Certain prior year amounts have been reclassified to be consistent with the current year presentation within our consolidated financial statements. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update 2016-02, Leases, or ASU 2016-02, which established a comprehensive lease standard under GAAP for virtually all industries. In August 2018, the FASB issued Accounting Standards Update 2018-11, Targeted Improvements to ASC 842, or ASU 2018-11, which allowed companies to adopt the standard using the modified retrospective transition method. ASU 2016-02 and 2018-11 are collectively referred to as ASC 842. ASC 842 requires lessees to apply a dual approach, classifying leases as either finance or operating leases. This classification determines whether the lease expense is recognized based on the effective interest method or on a straight line basis over the term of the lease. A lessee is also required to recognize a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. We adopted ASC 842 on January 1, 2019, using the modified retrospective transition method, and elected to not restate prior year comparative periods. We elected to adopt the package of practical expedients; accordingly, we retained the lease classification and initial direct costs for any leases that existed prior to adoption and we did not revisit whether any existing or expired contracts contain leases. See Note 9 for more information about the impact of ASC 842. In June 2018, the FASB issued Accounting Standards Update 2018-07, Compensation - Stock Compensation , or ASU 2018-07, which aligns the accounting for stock based payments to nonemployees with the accounting for stock based payments to employees. We adopted ASU 2018-07 on January 1, 2019, using the modified retrospective transition method, which had no impact on our prior year comparative period. Historically, compensation expense related to stock awards granted to nonemployees was determined based on the vesting date fair value. Under ASU 2018-07, compensation expense relating to all stock awards is now measured at the grant date fair value and amortized to expense over the period of time over which the stock based payments vest. Upon adoption of ASU 2018-07, stock awards to nonemployees were remeasured using the adoption date fair value, or the market value of our shares of common stock as of January 1, 2019. We include stock based compensation expense in selling, general and administrative expense in our consolidated statements of operations and comprehensive income (loss). In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles - Goodwill and Other - Internal-Use Software, |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues We recognize revenues based on the consideration specified in the contract with the customer, excluding any sales incentives (such as customer loyalty programs and customer rebates) and amounts collected on behalf of third parties (such as sales and excise taxes). The majority of our revenues are generated at the point of sale in our retail locations. Revenues consist of fuel revenues, nonfuel revenues and rent and royalties from franchisees. Fuel Revenues. We recognize fuel revenues and the related costs at the time of sale to customers at our company operated locations. We sell diesel fuel and gasoline to our customers at prices that we establish daily or are indexed to market prices and reset daily. We sell diesel fuel under pricing arrangements with certain customers. For the year ended December 31, 2019, approximately 86.4% of our diesel fuel volume was sold at discounts to posted prices under pricing arrangements with our fleet customers, some of which include rebates payable to the customer after the end of the period. Nonfuel Revenues. We recognize nonfuel revenues and the related costs at the time of sale to customers at our company operated locations. We sell a variety of nonfuel products and services at stated retail prices in our travel centers and standalone restaurants, as well as through our RoadSquad®, TechOn-Site® and TA Commercial Tire Network™ programs. Truck repair and maintenance goods or services may be sold at discounted prices under pricing arrangements with certain customers, some of which include rebates payable to the customer after the end of the period. Rent and Royalties from Franchisees Revenues. We recognize franchise royalties and advertising fees from franchisees as revenue monthly based on the franchisees' sales data reported to us. Royalty revenues are contractual as a percentage of the franchisees' revenues and advertising fees are contractual as either a percentage of the franchisees' revenues or as a fixed amount. When we enter into a new franchise agreement or a renewal term with an existing franchisee, the franchisee is required to pay an initial or renewal franchise fee. Initial and renewal franchise fees are recognized as revenue on a straight line basis over the term of the respective franchise agreements. For those travel centers that we lease to a franchisee, we recognize rent revenues on a straight line basis based on the current contractual rent amount. These leases include rent escalations that are contingent on future events, namely inflation or our investing in capital improvements at these travel centers. Because the rent increases related to these factors are contingent upon future events, we recognize the related rent revenues after such events have occurred. See Note 9 for more information about the travel centers we leased to franchisees. Other. Sales incentives and other promotional activities that we recognize as a reduction to revenues include, but are not limited to, the following: • Customer Loyalty Programs. We offer travel center trucking customers and casual restaurant diners the option to participate in our customer loyalty programs. Our customer loyalty programs provide customers with the right to earn loyalty awards on qualifying purchases that can be used for discounts on future purchases of goods or services. We apply a relative standalone selling price approach to our outstanding loyalty awards whereby a portion of each sale attributable to the loyalty awards earned is deferred and will be recognized as revenue in the category in which the loyalty awards are redeemed upon the redemption or expiration of the loyalty awards. Significant judgment is required to determine the standalone selling price for loyalty awards. Assumptions used in determining the standalone selling price include the historic redemption rate and the use of a weighted average selling price for fuel to calculate the revenues attributable to the customer loyalty awards. • Customer Discounts and Rebates. We enter into agreements with certain customers in which we agree to provide discounts on fuel and/or truck service purchases, some of which are structured as rebates payable to the customer after the end of the period. We recognize the cost of discounts against, and in the same period as, the revenues that generated the discounts earned. • Gift Cards. We sell branded gift cards. Sales proceeds are recognized as a contract liability; the liability is reduced and revenue is recognized when the gift card subsequently is redeemed for goods or services. Unredeemed gift card balances are recognized as revenues when the possibility of redemption becomes remote. Disaggregation of Revenues We disaggregate our revenues based on the type of good or service provided to the customer, or by fuel revenues and nonfuel revenues, in our consolidated statements of operations and comprehensive income (loss). Nonfuel revenues disaggregated by type of good or service for the years ended December 31, 2019 and 2018, were as follows: Year Ended December 31, 2019 2018 Nonfuel revenues: Store and retail services $ 756,854 $ 732,220 Truck service 674,203 671,385 Restaurant 425,090 416,736 Total nonfuel revenues $ 1,856,147 $ 1,820,341 Contract Liabilities Our contract liabilities, which are presented in our consolidated balance sheets in other current and other noncurrent liabilities, primarily include deferred revenues related to our customer loyalty programs, gift cards, rebates payable to customers and other deferred revenues. The following table shows the changes in our contract liabilities between periods. Customer Other Total December 31, 2017 $ 15,165 $ 4,681 $ 19,846 Increases due to unsatisfied performance obligations arising during the period 81,517 10,083 91,600 Revenues recognized from satisfying performance obligations during the period (74,548) (10,064) (84,612) Other (6,644) (1,230) (7,874) December 31, 2018 15,490 3,470 18,960 Increases due to unsatisfied performance obligations arising during the period 103,228 12,982 116,210 Revenues recognized from satisfying performance obligations during the period (90,462) (10,519) (100,981) Other (10,263) (1,111) (11,374) December 31, 2019 $ 17,993 $ 4,822 $ 22,815 As of December 31, 2019, we expect the unsatisfied performance obligations relating to our customer loyalty programs will be satisfied within 12 months. As of December 31, 2019, the deferred initial and renewal franchise fee revenue expected to be recognized in future periods ranges between $119 and $176 for each of the years 2020 through 2024. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2019 Acquisitions. In January 2019, we entered into agreements, or the Transaction Agreements, with SVC pursuant to which, among other things, we purchased 20 travel centers for $309,637, which amount includes $1,437 of transaction related costs. These acquisitions were accounted for as asset acquisitions that resulted in the derecognition of certain operating lease assets and liabilities for a net recognized aggregate cost basis of the acquired assets of $284,902. See Note 9 for more information about the Transaction Agreements and our leases with SVC and Note 14 for more information about our relationship with SVC. As of December 31, 2019, we had entered into an agreement to acquire one parcel of land for $1,358, which we expect to account for as an asset acquisition. We expect to complete this acquisition by the end of the second quarter of 2020, but this purchase is subject to conditions and may not occur, may be delayed or the terms may change. 2018 Acquisitions. During the year ended December 31, 2018, we acquired a travel center from one of our franchisees for a purchase price of $10,482, and we accounted for this transaction as a business combination, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their respective fair values as of the date of acquisition. We have included the results of the acquired business in our consolidated financial statements from the date of acquisition. The pro forma impact of this acquisition, including the respective results of operations from the beginning of the periods presented, is not material to our consolidated financial statements. During the year ended December 31, 2018, we acquired a tire retread facility for $2,805 and also acquired certain assets from two former franchisees, who previously leased from us travel centers we now operate, upon the termination of the related lease and franchise agreements for an aggregate purchase price of $5,202. These acquisitions were accounted for as asset acquisitions. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On December 5, 2018, we completed the sale of our convenience stores business for an aggregate sales price of $330,609. We received net proceeds from this sale of $319,853 after transaction related costs of $9,650 and cash sold of $1,106. Upon the classification of the assets and related liabilities as held for sale, we determined that the carrying value of the convenience stores business exceeded the agreed sales price less costs to sell, resulting in a loss on disposal of $79,623 recognized in the year ended December 31, 2018. The following table presents the results of operations for our discontinued operations for the year ended December 31, 2018. Year Ended Revenues $ 742,160 Cost of goods sold (excluding depreciation) 610,524 Site level operating expense 103,037 Selling, general and administrative expense 9,443 Real estate rent expense 2,206 Depreciation and amortization expense 20,418 Impairment of goodwill 69,340 Loss from discontinued operations before income taxes (72,808) Benefit for income taxes 14,789 Loss from discontinued operations, net of taxes (58,019) Loss on disposal (79,623) Benefit for income taxes 20,011 Loss from discontinued operations $ (117,631) |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net as of December 31, 2019 and 2018, consisted of the following: December 31, 2019 2018 Machinery, equipment and furniture $ 533,380 $ 459,892 Land and improvements 316,751 177,322 Buildings and improvements 307,433 197,866 Leasehold improvements 271,451 242,469 Construction in progress 24,678 65,855 Property and equipment, at cost 1,453,693 1,143,404 Less: accumulated depreciation and amortization 585,190 514,867 Property and equipment, net $ 868,503 $ 628,537 Total depreciation expense for the years ended December 31, 2019 and 2018, was $97,232 and $80,938, respectively, which included impairment charges of $2,369 for the year ended December 31, 2019, related to certain standalone restaurants. The following table shows the amounts of property and equipment owned by SVC but recognized in property and equipment, net in our consolidated balance sheets, and included within the balances shown in the table above, as a result of the required accounting for the assets funded by SVC under the deferred tenant improvements allowance and as of December 31, 2018, for the assets that did not qualify for sale leaseback accounting. Upon adoption of ASC 842, these failed sale leasebacks were reclassified as operating leases and are included in operating lease assets in our consolidated balance sheet as of December 31, 2019. See Note 9 for more information about our leases with SVC. December 31, 2019 2018 Leasehold improvements $ 101,316 $ 114,195 Land and improvements — 14,945 Buildings and improvements — 9,943 Machinery, equipment and furniture — 3,282 Property and equipment, at cost 101,316 142,365 Less: accumulated depreciation and amortization 81,915 96,266 Property and equipment, net $ 19,401 $ 46,099 At December 31, 2019, our property and equipment balance included $37,425 of improvements of the type that we historically requested that SVC purchase for an increase in annual minimum rent; however, we may elect not to sell some of those improvements and SVC is not obligated to purchase these improvements. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible Assets Intangible assets, net, as of December 31, 2019 and 2018, consisted of the following: December 31, 2019 Cost Accumulated Net Amortizable intangible assets: Agreements with franchisees $ 21,145 $ (13,350) $ 7,795 Leasehold interests 2,094 (2,094) — Other 3,913 (3,318) 595 Total amortizable intangible assets 27,152 (18,762) 8,390 Carrying value of trademarks (indefinite lives) 12,317 — 12,317 Intangible assets, net $ 39,469 $ (18,762) $ 20,707 December 31, 2018 Cost Accumulated Net Amortizable intangible assets: Agreements with franchisees $ 21,645 $ (12,308) $ 9,337 Leasehold interests 2,754 (2,183) 571 Other 3,913 (3,251) 662 Total amortizable intangible assets 28,312 (17,742) 10,570 Carrying value of trademarks (indefinite lives) 12,317 — 12,317 Intangible assets, net $ 40,629 $ (17,742) $ 22,887 Total amortization expense for amortizable intangible assets for the years ended December 31, 2019 and 2018, was $1,609 and $2,452, respectively. We amortize our amortizable intangible assets over a weighted average period of approximately nine years. The aggregate amortization expense for our amortizable intangible assets as of December 31, 2019, for each of the next five years is: Total 2020 $ 1,152 2021 1,068 2022 961 2023 863 2024 848 Goodwill As of December 31, 2019, all of our goodwill balance is deductible for tax purposes. Goodwill by reporting unit was as follows: December 31, 2019 2018 Travel centers business $ 22,213 $ 22,213 QSL business 3,046 3,046 Total goodwill $ 25,259 $ 25,259 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities as of December 31, 2019 and 2018, consisted of the following: December 31, 2019 2018 Taxes payable, other than income taxes $ 52,320 $ 42,985 Accrued wages and benefits 21,416 19,830 Customer loyalty program accruals 17,993 15,490 Self insurance program accruals, current portion 13,509 14,623 Accrued capital expenditures 4,721 7,742 Other 28,496 24,998 Total other current liabilities $ 138,455 $ 125,668 |
Long Term Debt
Long Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Long Term Debt Long term debt, net as of December 31, 2019 and 2018, consisted of the following: Interest Rate Maturity Date December 31, 2019 2018 2028 Senior Notes 8.25% January 15, 2028 $ 110,000 $ 110,000 2029 Senior Notes 8.00% December 15, 2029 120,000 120,000 2030 Senior Notes 8.00% October 15, 2030 100,000 100,000 Revolving Credit Facility 5.00% July 19, 2024 7,900 — Other long term debt 6.06% March 31, 2027 982 1,086 Deferred financing costs (9,561) (10,558) Total long term debt, net $ 329,321 $ 320,528 Senior Notes Our 2028 Senior Notes were issued in January 2013 and require us to pay interest quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. No principal payments are required prior to the maturity date. We may, at our option, at any time redeem some or all of the 2028 Senior Notes by paying 100% of the principal amount of the 2028 Senior Notes to be redeemed plus accrued but unpaid interest, if any, to, but not including, the redemption date. Our 2029 Senior Notes were issued in December 2014 and require us to pay interest quarterly in arrears on February 28, May 31, August 31 and November 30 of each year. No principal payments are required prior to the maturity date. We may, at our option, at any time redeem some or all of the 2029 Senior Notes by paying 100% of the principal amount of the 2029 Senior Notes to be redeemed plus accrued but unpaid interest, if any, to, but not including, the redemption date. Our 2030 Senior Notes were issued in October 2015 and require us to pay interest quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. No principal payments are required prior to the maturity date. We may, at our option, at any time redeem some or all of the 2030 Senior Notes by paying 100% of the principal amount of the 2030 Senior Notes to be redeemed plus accrued but unpaid interest, if any, to, but not including, the redemption date. We refer to the 2028 Senior Notes, 2029 Senior Notes and 2030 Senior Notes collectively as our Senior Notes, which are our senior unsecured obligations. The indenture governing our Senior Notes does not limit the amount of indebtedness we may incur. We may issue additional debt from time to time. Our Senior Notes are presented in our consolidated balance sheets as long term debt, net of deferred financing costs. We estimate that the fair values of our 2028 Senior Notes, 2029 Senior Notes and 2030 Senior Notes were $112,332, $121,200 and $102,000, respectively, based on their respective closing prices on The Nasdaq Stock Market LLC, or the Nasdaq, (a Level 1 input) on December 31, 2019. Revolving Credit Facility On July 19, 2019, we and certain of our subsidiaries, as borrowers or guarantors, entered into an amendment, or the Amendment, to our amended and restated loan and security agreement, or the Credit Facility, dated October 25, 2011, with Wells Fargo Capital Finance, LLC, as administrative agent for various lenders. The Amendment, among other things: (i) extended the maturity of the Credit Facility from December 19, 2019, to July 19, 2024; (ii) reduced the applicable margins on borrowings and standby letter of credit fees by 25 basis points and on commercial letter of credit fees by 12.5 basis points; (iii) made certain adjustments to the limitations on investments, dividends and stock repurchases under the Credit Facility in a manner favorable to us; (iv) reduced the sublimit for issuance of letters of credit under the Credit Facility from $170,000 to $125,000; and (v) made certain adjustments to the borrowing base calculation in a manner we believe to be favorable to us. Under the Credit Facility, a maximum of $200,000 may be drawn, repaid and redrawn until maturity. The availability of the maximum amount is subject to limits based on qualified collateral. Subject to available collateral and lender participation, the maximum amount of this Credit Facility may be increased to $300,000. The Credit Facility may be used for general business purposes and allows for the issuance of letters of credit. Generally, no principal payments are due until maturity. Under the terms of the Credit Facility, interest is payable on outstanding borrowings at a rate based on, at our option, LIBOR or a base rate, plus a premium (which premium is subject to adjustment based upon facility availability, utilization and other matters). As of December 31, 2019, the applicable margin was 1.25% for LIBOR borrowings and standby letter of credit fees, 0.25% for Base Rate borrowings and 0.625% for commercial letter of credit fees, in each case subject to adjustment based on facility availability, utilization and other matters. As of December 31, 2019, the unused line fee was 0.25% per annum, subject to adjustment according to the average daily principal amount of unused commitments under the Credit Facility. The Credit Facility requires us to maintain certain levels of collateral, limits our ability to incur debt and liens, restricts us from making certain investments and paying dividends and other distributions, requires us to maintain a minimum fixed charge ratio under certain circumstances and contains other customary covenants and conditions. The Credit Facility provides for the acceleration of principal and interest payments upon an event of default including, but not limited to, failure to pay interest or other amounts due, a change in control of us, as defined in the Credit Facility, and our default under certain contracts, including our leases with SVC and our business management agreement with The RMR Group LLC, or RMR. Our Credit Facility is secured by substantially all of our cash, accounts receivable, inventory, equipment and intangible assets. The amount available to us is determined by reference to a borrowing base calculation based on eligible collateral. At December 31, 2019, based on our qualified collateral, a total of $111,017 was available to us for loans and letters of credit under the Credit Facility. At December 31, 2019, there were $7,900 of borrowings under the Credit Facility, $31 of accrued interest and outstanding fees and $18,141 of letters of credit issued under that facility, securing certain insurance, fuel tax and other obligations. The outstanding loans, accrued interest and outstanding fees and letters of credit reduce the amount available for borrowing under the Credit Facility, leaving $84,945 available for use as of that date. IHOP Secured Advance Note On October 28, 2019, we entered into a multi unit franchise agreement with IHOP Franchisor LLC, or IHOP, in which we agreed to rebrand and convert up to 94 of our full service restaurants to IHOP restaurants over the next five years, or the IHOP Agreement. Concurrent with entering into the IHOP Agreement, we entered into a Secured Advance Note with IHOP, or the IHOP Note, pursuant to which we can borrow up to $10,000 in connection with the costs to convert our full service restaurants to IHOP restaurants. At December 31, 2019, there were no loans outstanding under the IHOP Note. West Greenwich Term Loan On February 7, 2020, we entered into a 10 year term loan for $16,600 with The Washington Trust Company, or the West Greenwich Loan. The West Greenwich Loan is secured by a mortgage encumbering one of our travel centers. The interest rate is fixed at 3.85% for five years based on the five year Federal Home Loan Bank rate plus 198 basis points, and will reset thereafter. The West Greenwich Loan requires us to make principal and interest payments monthly. We plan to use the proceeds from the West Greenwich Loan for general business purposes. We may, at our option with 60 days prior written notice, at any time repay the loan in full, at a nominal penalty within the first three years, prior to the end of the 10 year term. Deferred Financing Costs The unamortized balance of our deferred financing costs were $9,561 and $10,558 for our Senior Notes and $671 and $216 for our Credit Facility at December 31, 2019 and 2018, respectively, net of accumulated amortization of $5,420 and $4,422, and $1,136 and $904, respectively. During the year ended December 31, 2019, we capitalized $688 of the costs related to the Amendment of our Credit Facility and we recognized expense of $47 to write off previously capitalized fees when we amended our Credit Facility. The deferred financing costs for our Senior Notes are presented as a reduction of long term debt, net and the deferred financing costs for our Credit Facility are presented in other noncurrent assets in our consolidated balance sheets. We estimate we will recognize future amortization of deferred financing costs of $1,149 in 2020, $1,146 in each of the years 2021, 2022 and 2023 and $1,075 in 2024. We recognized interest expense from the amortization of deferred financing costs of $1,183 and $1,221 for the years ended December 31, 2019 and 2018, respectively. |
Leasing Transactions
Leasing Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leasing Transactions, As A Lessee | Leasing Transactions On January 1, 2019, we adopted ASC 842 using the modified retrospective transition method and elected not to restate prior year comparative periods. We elected to adopt the package of practical expedients; accordingly, we retained the lease classification and initial direct costs for any leases that existed prior to adoption and we did not revisit whether any existing or expired contracts contain leases. On the date we adopted ASC 842, we recognized operating lease assets of $1,785,866 and operating lease liabilities of $1,996,957. We also recognized an adjustment to our beginning accumulated deficit of $86,243, net of taxes, consisting of (i) the previously recognized deferred gain on sale leaseback transactions of $113,712, (ii) the previously recognized liability for certain failed sale leaseback transactions recognized as financings of $1,591 and (iii) the related tax effect of $29,060. As a Lessee We have lease agreements covering many of our properties, as well as various equipment, with the most significant leases being our five leases with SVC, which are further described below. Certain of our leases include renewal options, and certain leases include escalation clauses and purchase options. Renewal periods are included in calculating our operating lease assets and liabilities when they are reasonably certain. Leases with an initial term of 12 months or less are not recognized in our consolidated balance sheets. As of December 31, 2019, all of our leases were classified as operating leases. Certain of our operating leases provide for variable lease costs, which primarily include percentage rent and our obligation for the estimated cost of removing underground storage tanks under the SVC Leases (as defined below). Our lease costs are included in various balances in our consolidated statements of operations and comprehensive income (loss), as shown in the following table. For the year ended December 31, 2019, our lease costs consisted of the following: Classification in our Consolidated Year Ended Operating lease costs: SVC Leases Real estate rent expense $ 240,328 Operating lease costs: other Real estate rent expense 11,082 Variable lease costs: SVC Leases Real estate rent expense 5,203 Variable lease costs: other Real estate rent expense 1,149 Total real estate rent expense 257,762 Operating lease costs: equipment and other Site level operating expense and selling, general and administrative expense 3,088 Short-term lease costs Site level operating expense and selling, general and administrative expense 2,869 Sublease income Nonfuel revenues (2,180) Net lease costs $ 261,539 During the year ended December 31, 2019, we recognized impairment charges of $579 to our operating lease assets relating to certain standalone restaurants, which are included in real estate rent expense in our consolidated statement of operations and comprehensive income (loss). Maturities of our operating lease liabilities that had remaining noncancelable lease terms in excess of one year as of December 31, 2019, were as follows: SVC Leases (1) Other Total Years ended December 31: 2020 $ 271,336 $ 6,548 $ 277,884 2021 270,799 5,555 276,354 2022 268,936 4,439 273,375 2023 255,344 3,107 258,451 2024 251,150 1,813 252,963 Thereafter 2,034,504 7,724 2,042,228 Total operating lease payments 3,352,069 29,186 3,381,255 Less: present value discount (2) (1,391,435) (5,562) (1,396,997) Present value of operating lease liabilities $ 1,960,634 $ 23,624 $ 1,984,258 (1) Includes rent for properties we sublease from SVC and pay directly to SVC's landlords. (2) The discount rate used to derive the present value of unpaid lease payments is based on the rates implicit in the SVC Leases and our incremental borrowing rate for all other leases. The weighted average remaining lease term as of December 31, 2019, was approximately 13 years. Our weighted average discount rate as of December 31, 2019, was 9.1%. During the year ended December 31, 2019, we paid $279,168 for amounts that had been included in the measurement of our operating lease liabilities. As of December 31, 2019, our operating lease assets and liabilities consisted of the following: SVC Leases Other Total Operating lease assets $ 1,796,406 $ 21,592 $ 1,817,998 Current operating lease liabilities 98,574 5,496 104,070 Noncurrent operating lease liabilities 1,862,060 18,128 1,880,188 As previously disclosed in our 2018 Annual Report and under the previous lease accounting standard, future minimum lease payments required under leases that had remaining noncancelable lease terms in excess of one year as of December 31, 2018, were as follows (included herein are the full payments then due under the SVC Leases, including the amount attributed to the lease of those sites that were accounted for as a financing as of December 31, 2018, in our consolidated balance sheet as reflected in the sale leaseback financing obligations): Total Years ended December 31: 2019 $ 302,855 2020 301,220 2021 299,393 2022 296,551 2023 295,534 Thereafter 1,980,078 Total $ 3,475,631 The amounts in the table above are as of December 31, 2018, and do not reflect the $43,148 annual minimum rent reduction resulting from the Transaction Agreements entered into in January 2019, as further described below. Leasing Agreements with SVC. As of December 31, 2019, we leased from SVC a total of 179 properties under five leases, four of which we refer to as the TA Leases and one of which we refer to as the Petro Lease, and which we refer to collectively as the SVC Leases. In January 2019, we entered into the Transaction Agreements, pursuant to which: • We purchased 20 travel center properties from SVC, which we previously leased from SVC, for a total acquisition cost of $309,637, including $1,437 of transaction related costs. • Upon completing these transactions, these travel centers were removed from the SVC Leases and our annual minimum rent due to SVC was reduced by $43,148. • The term of each SVC Lease was extended by three years. • Commencing on April 1, 2019, we began to pay SVC 16 quarterly installments of approximately $4,404 each (an aggregate of $70,458) to fully satisfy and discharge our $150,000 deferred rent obligation to SVC that otherwise would have become due in five installments between 2024 and 2030. We paid to SVC $13,211 in respect of such obligation during the year ended December 31, 2019. • Commencing with the year ending December 31, 2020, we will be obligated to pay to SVC an additional amount of percentage rent equal to one-half percent (0.5%) of the excess of our annual nonfuel revenues at leased sites over the nonfuel revenues for each respective site for the year ending December 31, 2019. • Certain of the 179 travel center properties that we continue to lease from SVC were reallocated among the SVC Leases. As a result of the Transaction Agreements, our operating lease assets and liabilities each increased by $23,673 and our asset retirement obligations increased by $2,420. In addition, the purchase of the 20 travel center properties resulted in the derecognition of certain operating lease assets and liabilities. See Note 3 for more information about these acquisitions. The number of properties leased, the terms, the annual minimum rent and the deferred rent balances owed by us under the SVC Leases, as of December 31, 2019, were as follows: Number Initial Term End Date (1) Annual Minimum Deferred Rent (2) TA Lease 1 36 December 31, 2032 $ 49,707 $ 15,148 TA Lease 2 36 December 31, 2031 44,077 14,068 TA Lease 3 35 December 31, 2029 42,409 13,870 TA Lease 4 37 December 31, 2033 46,067 14,161 Petro Lease 35 June 30, 2035 61,654 — Total 179 $ 243,914 $ 57,247 (1) We have two renewal options of 15 years each under each of the SVC Leases. (2) Commencing April 1, 2019, we began to pay SVC $70,458 in 16 equal quarterly installments of $4,404 each for deferred rent we owe SVC. Under our rent deferral agreement with SVC, deferred rent shall be accelerated and interest shall begin to accrue thereon at 1.0% per month on the deferred rent amounts if certain events occur, including: our default under the SVC Leases; a change of control of us, as defined in the rent deferral agreement; or our declaration or payment of a dividend or other distribution in respect of our common stock. The total amount of deferred rent outstanding as of December 31, 2019, was $57,247. On October 14, 2019, we and SVC amended the SVC Leases, pursuant to which, among other things, certain of the 179 travel center properties that we lease from SVC were reallocated among the SVC Leases. We accounted for this amendment as a lease modification. As a result, our operating lease assets and liabilities each increased by $33,816. The amendments did not have a material impact on our real estate rent expense. The SVC Leases are "triple net" leases that require us to pay all costs incurred in the operation of the leased properties, including costs related to personnel, utilities, inventory acquisition and provision of services to customers, insurance, real estate and personal property taxes, environmental related expenses, underground storage tank removal costs and ground lease payments at those properties at which SVC leases the property and subleases it to us. We also are required generally to indemnify SVC for certain environmental matters and for liabilities that arise during the terms of the leases from ownership or operation of the leased properties and, at lease expiration, we are required to pay an amount equal to an estimate of the cost of removing underground storage tanks on the leased properties. The SVC Leases require us to maintain the leased properties, including structural and non-structural components. We recognized total rent expense of $245,531 and $273,012 for the years ended December 31, 2019 and 2018, respectively, under the SVC Leases. In addition to the payment of annual minimum rent, the SVC Leases provide for payment to SVC of percentage rent, calculated at 3.0% of the increase in total nonfuel revenues at each property over base year levels (the base year is 2012 for 35 properties, 2015 for 138 properties, 2017 for two properties, 2019 for three properties and 2020 for one property). The percentage rent amounts due for the years ended December 31, 2019 and 2018, were $4,075 and $3,591, respectively. As noted above, pursuant to the Transaction Agreements, we are obligated to pay additional percentage rent commencing with the year ended December 31, 2020. Under the SVC Leases, we may request that SVC purchase approved amounts of renovations, improvements and equipment at the leased properties in return for increases in our annual minimum rent according to the following formula: the annual minimum rent will be increased by an amount equal to the amount paid by SVC multiplied by the greater of (i) 8.5% or (ii) a benchmark U.S. Treasury interest rate plus 3.5%. During the year ended December 31, 2018, we sold to SVC $56,346 of improvements we made to properties leased from SVC; as a result, pursuant to the terms of the SVC Leases, our annual minimum rent payable to SVC increased by $4,789. During the year ended December 31, 2019, we did not sell to SVC any improvements we made to properties leased from SVC. At December 31, 2019, our property and equipment balance included $37,425 of improvements of the type that we historically requested that SVC purchase for an increase in annual minimum rent; however, we may elect not to sell some of those improvements and SVC is not obligated to purchase these improvements. As permitted by the SVC Leases, we sublease a portion of certain travel centers to third parties to operate other retail operations. These subleases are classified as operating leases. We recognized sublease rental income of $2,180 and $2,294 for the years ended December 31, 2019 and 2018, respectively. The following table summarizes the various amounts related to the SVC Leases that are included in our consolidated balance sheet as of December 31, 2018. December 31, Current SVC Leases liabilities: Accrued rent $ 24,721 Sale leaseback financing obligations (1) 1,032 Straight line rent accrual (2) 2,458 Deferred gain (3) 10,128 Deferred tenant improvements allowance (4) 3,770 Total current SVC Leases liabilities $ 42,109 Noncurrent SVC Leases liabilities: Deferred rent obligation (5) $ 150,000 Sale leaseback financing obligations (1) 22,365 Straight line rent accrual (2) 46,431 Deferred gain (3) 100,913 Deferred tenant improvements allowance (4) 34,047 Total noncurrent SVC Leases liabilities $ 353,756 (1) Sale Leaseback Financing Obligations. As of December 31, 2018, the assets related to two travel centers we leased from SVC were reflected in our consolidated balance sheet, as were the related financing obligations. This accounting was required primarily because, at the time of the inception of the prior leases with SVC, more than a minor portion of these two travel centers was subleased to third parties. Upon adoption of ASC 842, these failed sale leasebacks were reclassified as operating leases, which resulted in a gain that was recognized in our beginning accumulated deficit as of January 1, 2019. See above for more information about the impact of adopting ASC 842. (2) Straight Line Rent Accrual. As of December 31, 2018, the straight line rent accrual included the accrued rent expense from 2007 to 2012 for stated increases in our annual minimum rent due under our then existing TA Lease. The TA Leases we entered into in connection with a transaction agreement we entered into with SVC in 2015 contain no stated rent payment increases. Prior to the adoption of ASC 842, we amortized this accrual on a straight line basis over the current terms of the TA Leases as a reduction of real estate rent expense. The straight line rent accrual also included our obligation for the estimated cost of removing underground storage tanks at properties leased from SVC at the end of the related lease; we recognized these obligations on a straight line basis over the term of the related leases as additional real estate rent expense. As of January 1, 2019, the straight line rent accrual was reclassified as a reduction to our operating lease assets and the obligation for the estimated cost of removal of underground storage tanks was reclassified to other noncurrent liabilities. As of December 31, 2019, our obligation for the estimated cost of removal of underground storage tanks was $22,216. (3) Deferred Gain. The deferred gain primarily included $145,462 of gains from the sales of travel centers and certain other assets to SVC during 2015 and 2016. Prior to the adoption of ASC 842, we amortized the deferred gains on a straight line basis over the terms of the related leases as a reduction of real estate rent expense. Upon adoption of ASC 842, we recognized the unamortized deferred gain of $85,053, net of taxes, in our beginning accumulated deficit as of January 1, 2019. See above for more information about the impact of adopting ASC 842. (4) Deferred Tenant Improvements Allowance. SVC funded certain capital projects at the properties we lease under the SVC Leases without an increase in rent payable by us. In connection with SVC's initial capital commitment, we recognized a liability for rent deemed to be related to this capital commitment as a deferred tenant improvements allowance. Prior to the adoption of ASC 842, we amortized the deferred tenant improvements allowance on a straight line basis over the terms of the SVC Leases as a reduction of real estate rent expense. Upon the adoption of ASC 842, the unamortized balance of the deferred tenant improvements allowance was reclassified as a reduction to our operating lease assets as of January 1, 2019. (5) Deferred Rent Obligation . Pursuant to a rent deferral agreement with SVC, we previously deferred as of December 31, 2010, a total of $150,000 of rent payable to SVC, which remained outstanding as of December 31, 2018, and had been due in five installments between 2024 and 2030. Upon the adoption of ASC 842, these future lease payments were included in our calculation of our operating lease assets and liabilities and the deferred rent obligation was reclassified as a reduction to our operating lease assets as of January 1, 2019. In January 2019, as described above and pursuant to the terms of the Transaction Agreements, our deferred rent obligation was reduced to $70,458, payable in 16 equal quarterly installments commencing on April 1, 2019, and our operating lease assets and liabilities were remeasured using these revised payment amounts. The total amount of deferred rent outstanding as of December 31, 2019, was $57,247. As a Lessor As of December 31, 2019, we leased two travel centers to franchisees. These two lease agreements expire in June 2022. These leases include rent escalations that are contingent on future events, namely inflation or our investing in capital improvements at these travel centers. During the year ended December 31, 2018, we leased four travel centers to franchisees, two of which expired prior to December 31, 2018. Rent revenues from these operating leases totaled $2,293 and $3,052 for the years ended December 31, 2019 and 2018, respectively. Future minimum lease payments due to us for the two leased sites under these operating leases as of December 31, 2019, were $2,287 for each of the years 2020 and 2021 and $1,144 for 2022. See above for information regarding certain travel centers that we leased from SVC in which we sublease a portion of the travel centers to third parties to operate other retail operations. |
Leasing Transactions, As A Lessor | Leasing Transactions On January 1, 2019, we adopted ASC 842 using the modified retrospective transition method and elected not to restate prior year comparative periods. We elected to adopt the package of practical expedients; accordingly, we retained the lease classification and initial direct costs for any leases that existed prior to adoption and we did not revisit whether any existing or expired contracts contain leases. On the date we adopted ASC 842, we recognized operating lease assets of $1,785,866 and operating lease liabilities of $1,996,957. We also recognized an adjustment to our beginning accumulated deficit of $86,243, net of taxes, consisting of (i) the previously recognized deferred gain on sale leaseback transactions of $113,712, (ii) the previously recognized liability for certain failed sale leaseback transactions recognized as financings of $1,591 and (iii) the related tax effect of $29,060. As a Lessee We have lease agreements covering many of our properties, as well as various equipment, with the most significant leases being our five leases with SVC, which are further described below. Certain of our leases include renewal options, and certain leases include escalation clauses and purchase options. Renewal periods are included in calculating our operating lease assets and liabilities when they are reasonably certain. Leases with an initial term of 12 months or less are not recognized in our consolidated balance sheets. As of December 31, 2019, all of our leases were classified as operating leases. Certain of our operating leases provide for variable lease costs, which primarily include percentage rent and our obligation for the estimated cost of removing underground storage tanks under the SVC Leases (as defined below). Our lease costs are included in various balances in our consolidated statements of operations and comprehensive income (loss), as shown in the following table. For the year ended December 31, 2019, our lease costs consisted of the following: Classification in our Consolidated Year Ended Operating lease costs: SVC Leases Real estate rent expense $ 240,328 Operating lease costs: other Real estate rent expense 11,082 Variable lease costs: SVC Leases Real estate rent expense 5,203 Variable lease costs: other Real estate rent expense 1,149 Total real estate rent expense 257,762 Operating lease costs: equipment and other Site level operating expense and selling, general and administrative expense 3,088 Short-term lease costs Site level operating expense and selling, general and administrative expense 2,869 Sublease income Nonfuel revenues (2,180) Net lease costs $ 261,539 During the year ended December 31, 2019, we recognized impairment charges of $579 to our operating lease assets relating to certain standalone restaurants, which are included in real estate rent expense in our consolidated statement of operations and comprehensive income (loss). Maturities of our operating lease liabilities that had remaining noncancelable lease terms in excess of one year as of December 31, 2019, were as follows: SVC Leases (1) Other Total Years ended December 31: 2020 $ 271,336 $ 6,548 $ 277,884 2021 270,799 5,555 276,354 2022 268,936 4,439 273,375 2023 255,344 3,107 258,451 2024 251,150 1,813 252,963 Thereafter 2,034,504 7,724 2,042,228 Total operating lease payments 3,352,069 29,186 3,381,255 Less: present value discount (2) (1,391,435) (5,562) (1,396,997) Present value of operating lease liabilities $ 1,960,634 $ 23,624 $ 1,984,258 (1) Includes rent for properties we sublease from SVC and pay directly to SVC's landlords. (2) The discount rate used to derive the present value of unpaid lease payments is based on the rates implicit in the SVC Leases and our incremental borrowing rate for all other leases. The weighted average remaining lease term as of December 31, 2019, was approximately 13 years. Our weighted average discount rate as of December 31, 2019, was 9.1%. During the year ended December 31, 2019, we paid $279,168 for amounts that had been included in the measurement of our operating lease liabilities. As of December 31, 2019, our operating lease assets and liabilities consisted of the following: SVC Leases Other Total Operating lease assets $ 1,796,406 $ 21,592 $ 1,817,998 Current operating lease liabilities 98,574 5,496 104,070 Noncurrent operating lease liabilities 1,862,060 18,128 1,880,188 As previously disclosed in our 2018 Annual Report and under the previous lease accounting standard, future minimum lease payments required under leases that had remaining noncancelable lease terms in excess of one year as of December 31, 2018, were as follows (included herein are the full payments then due under the SVC Leases, including the amount attributed to the lease of those sites that were accounted for as a financing as of December 31, 2018, in our consolidated balance sheet as reflected in the sale leaseback financing obligations): Total Years ended December 31: 2019 $ 302,855 2020 301,220 2021 299,393 2022 296,551 2023 295,534 Thereafter 1,980,078 Total $ 3,475,631 The amounts in the table above are as of December 31, 2018, and do not reflect the $43,148 annual minimum rent reduction resulting from the Transaction Agreements entered into in January 2019, as further described below. Leasing Agreements with SVC. As of December 31, 2019, we leased from SVC a total of 179 properties under five leases, four of which we refer to as the TA Leases and one of which we refer to as the Petro Lease, and which we refer to collectively as the SVC Leases. In January 2019, we entered into the Transaction Agreements, pursuant to which: • We purchased 20 travel center properties from SVC, which we previously leased from SVC, for a total acquisition cost of $309,637, including $1,437 of transaction related costs. • Upon completing these transactions, these travel centers were removed from the SVC Leases and our annual minimum rent due to SVC was reduced by $43,148. • The term of each SVC Lease was extended by three years. • Commencing on April 1, 2019, we began to pay SVC 16 quarterly installments of approximately $4,404 each (an aggregate of $70,458) to fully satisfy and discharge our $150,000 deferred rent obligation to SVC that otherwise would have become due in five installments between 2024 and 2030. We paid to SVC $13,211 in respect of such obligation during the year ended December 31, 2019. • Commencing with the year ending December 31, 2020, we will be obligated to pay to SVC an additional amount of percentage rent equal to one-half percent (0.5%) of the excess of our annual nonfuel revenues at leased sites over the nonfuel revenues for each respective site for the year ending December 31, 2019. • Certain of the 179 travel center properties that we continue to lease from SVC were reallocated among the SVC Leases. As a result of the Transaction Agreements, our operating lease assets and liabilities each increased by $23,673 and our asset retirement obligations increased by $2,420. In addition, the purchase of the 20 travel center properties resulted in the derecognition of certain operating lease assets and liabilities. See Note 3 for more information about these acquisitions. The number of properties leased, the terms, the annual minimum rent and the deferred rent balances owed by us under the SVC Leases, as of December 31, 2019, were as follows: Number Initial Term End Date (1) Annual Minimum Deferred Rent (2) TA Lease 1 36 December 31, 2032 $ 49,707 $ 15,148 TA Lease 2 36 December 31, 2031 44,077 14,068 TA Lease 3 35 December 31, 2029 42,409 13,870 TA Lease 4 37 December 31, 2033 46,067 14,161 Petro Lease 35 June 30, 2035 61,654 — Total 179 $ 243,914 $ 57,247 (1) We have two renewal options of 15 years each under each of the SVC Leases. (2) Commencing April 1, 2019, we began to pay SVC $70,458 in 16 equal quarterly installments of $4,404 each for deferred rent we owe SVC. Under our rent deferral agreement with SVC, deferred rent shall be accelerated and interest shall begin to accrue thereon at 1.0% per month on the deferred rent amounts if certain events occur, including: our default under the SVC Leases; a change of control of us, as defined in the rent deferral agreement; or our declaration or payment of a dividend or other distribution in respect of our common stock. The total amount of deferred rent outstanding as of December 31, 2019, was $57,247. On October 14, 2019, we and SVC amended the SVC Leases, pursuant to which, among other things, certain of the 179 travel center properties that we lease from SVC were reallocated among the SVC Leases. We accounted for this amendment as a lease modification. As a result, our operating lease assets and liabilities each increased by $33,816. The amendments did not have a material impact on our real estate rent expense. The SVC Leases are "triple net" leases that require us to pay all costs incurred in the operation of the leased properties, including costs related to personnel, utilities, inventory acquisition and provision of services to customers, insurance, real estate and personal property taxes, environmental related expenses, underground storage tank removal costs and ground lease payments at those properties at which SVC leases the property and subleases it to us. We also are required generally to indemnify SVC for certain environmental matters and for liabilities that arise during the terms of the leases from ownership or operation of the leased properties and, at lease expiration, we are required to pay an amount equal to an estimate of the cost of removing underground storage tanks on the leased properties. The SVC Leases require us to maintain the leased properties, including structural and non-structural components. We recognized total rent expense of $245,531 and $273,012 for the years ended December 31, 2019 and 2018, respectively, under the SVC Leases. In addition to the payment of annual minimum rent, the SVC Leases provide for payment to SVC of percentage rent, calculated at 3.0% of the increase in total nonfuel revenues at each property over base year levels (the base year is 2012 for 35 properties, 2015 for 138 properties, 2017 for two properties, 2019 for three properties and 2020 for one property). The percentage rent amounts due for the years ended December 31, 2019 and 2018, were $4,075 and $3,591, respectively. As noted above, pursuant to the Transaction Agreements, we are obligated to pay additional percentage rent commencing with the year ended December 31, 2020. Under the SVC Leases, we may request that SVC purchase approved amounts of renovations, improvements and equipment at the leased properties in return for increases in our annual minimum rent according to the following formula: the annual minimum rent will be increased by an amount equal to the amount paid by SVC multiplied by the greater of (i) 8.5% or (ii) a benchmark U.S. Treasury interest rate plus 3.5%. During the year ended December 31, 2018, we sold to SVC $56,346 of improvements we made to properties leased from SVC; as a result, pursuant to the terms of the SVC Leases, our annual minimum rent payable to SVC increased by $4,789. During the year ended December 31, 2019, we did not sell to SVC any improvements we made to properties leased from SVC. At December 31, 2019, our property and equipment balance included $37,425 of improvements of the type that we historically requested that SVC purchase for an increase in annual minimum rent; however, we may elect not to sell some of those improvements and SVC is not obligated to purchase these improvements. As permitted by the SVC Leases, we sublease a portion of certain travel centers to third parties to operate other retail operations. These subleases are classified as operating leases. We recognized sublease rental income of $2,180 and $2,294 for the years ended December 31, 2019 and 2018, respectively. The following table summarizes the various amounts related to the SVC Leases that are included in our consolidated balance sheet as of December 31, 2018. December 31, Current SVC Leases liabilities: Accrued rent $ 24,721 Sale leaseback financing obligations (1) 1,032 Straight line rent accrual (2) 2,458 Deferred gain (3) 10,128 Deferred tenant improvements allowance (4) 3,770 Total current SVC Leases liabilities $ 42,109 Noncurrent SVC Leases liabilities: Deferred rent obligation (5) $ 150,000 Sale leaseback financing obligations (1) 22,365 Straight line rent accrual (2) 46,431 Deferred gain (3) 100,913 Deferred tenant improvements allowance (4) 34,047 Total noncurrent SVC Leases liabilities $ 353,756 (1) Sale Leaseback Financing Obligations. As of December 31, 2018, the assets related to two travel centers we leased from SVC were reflected in our consolidated balance sheet, as were the related financing obligations. This accounting was required primarily because, at the time of the inception of the prior leases with SVC, more than a minor portion of these two travel centers was subleased to third parties. Upon adoption of ASC 842, these failed sale leasebacks were reclassified as operating leases, which resulted in a gain that was recognized in our beginning accumulated deficit as of January 1, 2019. See above for more information about the impact of adopting ASC 842. (2) Straight Line Rent Accrual. As of December 31, 2018, the straight line rent accrual included the accrued rent expense from 2007 to 2012 for stated increases in our annual minimum rent due under our then existing TA Lease. The TA Leases we entered into in connection with a transaction agreement we entered into with SVC in 2015 contain no stated rent payment increases. Prior to the adoption of ASC 842, we amortized this accrual on a straight line basis over the current terms of the TA Leases as a reduction of real estate rent expense. The straight line rent accrual also included our obligation for the estimated cost of removing underground storage tanks at properties leased from SVC at the end of the related lease; we recognized these obligations on a straight line basis over the term of the related leases as additional real estate rent expense. As of January 1, 2019, the straight line rent accrual was reclassified as a reduction to our operating lease assets and the obligation for the estimated cost of removal of underground storage tanks was reclassified to other noncurrent liabilities. As of December 31, 2019, our obligation for the estimated cost of removal of underground storage tanks was $22,216. (3) Deferred Gain. The deferred gain primarily included $145,462 of gains from the sales of travel centers and certain other assets to SVC during 2015 and 2016. Prior to the adoption of ASC 842, we amortized the deferred gains on a straight line basis over the terms of the related leases as a reduction of real estate rent expense. Upon adoption of ASC 842, we recognized the unamortized deferred gain of $85,053, net of taxes, in our beginning accumulated deficit as of January 1, 2019. See above for more information about the impact of adopting ASC 842. (4) Deferred Tenant Improvements Allowance. SVC funded certain capital projects at the properties we lease under the SVC Leases without an increase in rent payable by us. In connection with SVC's initial capital commitment, we recognized a liability for rent deemed to be related to this capital commitment as a deferred tenant improvements allowance. Prior to the adoption of ASC 842, we amortized the deferred tenant improvements allowance on a straight line basis over the terms of the SVC Leases as a reduction of real estate rent expense. Upon the adoption of ASC 842, the unamortized balance of the deferred tenant improvements allowance was reclassified as a reduction to our operating lease assets as of January 1, 2019. (5) Deferred Rent Obligation . Pursuant to a rent deferral agreement with SVC, we previously deferred as of December 31, 2010, a total of $150,000 of rent payable to SVC, which remained outstanding as of December 31, 2018, and had been due in five installments between 2024 and 2030. Upon the adoption of ASC 842, these future lease payments were included in our calculation of our operating lease assets and liabilities and the deferred rent obligation was reclassified as a reduction to our operating lease assets as of January 1, 2019. In January 2019, as described above and pursuant to the terms of the Transaction Agreements, our deferred rent obligation was reduced to $70,458, payable in 16 equal quarterly installments commencing on April 1, 2019, and our operating lease assets and liabilities were remeasured using these revised payment amounts. The total amount of deferred rent outstanding as of December 31, 2019, was $57,247. As a Lessor As of December 31, 2019, we leased two travel centers to franchisees. These two lease agreements expire in June 2022. These leases include rent escalations that are contingent on future events, namely inflation or our investing in capital improvements at these travel centers. During the year ended December 31, 2018, we leased four travel centers to franchisees, two of which expired prior to December 31, 2018. Rent revenues from these operating leases totaled $2,293 and $3,052 for the years ended December 31, 2019 and 2018, respectively. Future minimum lease payments due to us for the two leased sites under these operating leases as of December 31, 2019, were $2,287 for each of the years 2020 and 2021 and $1,144 for 2022. See above for information regarding certain travel centers that we leased from SVC in which we sublease a portion of the travel centers to third parties to operate other retail operations. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity On August 1, 2019, in conjunction with our conversion from a Delaware limited liability company to a Maryland corporation, we increased our authorized shares of common stock from 8,674 shares to 16,000 shares. In addition, we completed a reverse stock split of our outstanding shares of common stock pursuant to which every five shares of our issued and outstanding common stock were exchanged for one share of our common stock. No fractional shares were issued in the reverse stock split. Instead, fractional shares that otherwise would have resulted from the reverse stock split were purchased by us at the closing price of our common stock on July 31, 2019. The common stock information included within this Annual Report has been retrospectively adjusted to reflect this reverse stock split for all dates and periods presented. Share Award Plans On May 19, 2016, our stockholders approved the TravelCenters of America LLC 2016 Equity Compensation Plan, and in 2019, the plan was amended and restated to reflect our conversion to a Maryland corporation and our reverse stock split effective August 1, 2019, which are collectively referred to as the 2016 Plan. Under the terms of the 2016 Plan, 860 shares of common stock have been authorized for issuance under the terms of the 2016 Plan. The 2016 Plan replaced the Amended and Restated TravelCenters of America LLC 2007 Equity Compensation Plan, or the 2007 Plan. No additional awards will be made under the 2007 Plan and the shares of common stock previously registered for offer and sale under the 2007 Plan but not yet issued were deregistered, although shares of common stock awarded under the 2007 Plan that had not yet vested have continued, and will continue, to vest in accordance with, and subject to, the terms of the related awards. We refer to the 2007 Plan and 2016 Plan collectively as the Share Award Plans. We awarded a total of 270 and 175 shares of common stock under the 2016 Plan during the years ended December 31, 2019 and 2018, respectively, with aggregate market values of $2,647 and $3,867, respectively, based on the closing prices of our shares of common stock on the Nasdaq on the dates of the awards. During the years ended December 31, 2019 and 2018, we recognized total stock based compensation expense of $3,441 and $6,371, respectively. During the years ended December 31, 2019 and 2018, the vesting date fair value of shares of common stock that vested was $1,754 and $5,147, respectively. The weighted average grant date fair value of shares of common stock awarded during the years ended December 31, 2019 and 2018, was $9.78 and $22.07, per share of common stock, respectively. Shares of common stock issued to Directors vested immediately and the related stock based compensation expense was recognized on the date of the award. Shares of common stock issued to others vest in five Number of Weighted Average Unvested shares of common stock as of December 31, 2018 316 $ 27.44 Granted 270 9.78 Vested (168) 22.15 Forfeited/canceled (6) 26.57 Unvested shares of common stock as of December 31, 2019 412 18.03 Treasury Stock Certain recipients of stock awards may elect to have us withhold the number of their vesting shares of common stock with a fair market value sufficient to fund the required tax withholding obligations with respect to their stock awards and during the year ended December 31, 2019, we acquired fractional shares of common stock that resulted from the reverse stock split on August 1, 2019. For the years ended December 31, 2019 and 2018, we acquired through this share withholding process and the reverse stock split 37 and 89 shares of common stock, respectively, with an aggregate value of $346 and $1,744, respectively. During the years ended December 31, 2019 and 2018, we retired 37 and 89 shares of treasury stock, $0.001 par value, respectively, with a carrying value of $346 and $1,744, respectively, that reduced our shares of common stock outstanding. Income (Loss) Per Share of Common Stock from Continuing Operations Attributable to Common Stockholders We calculate basic earnings per share of common stock by dividing income (loss) from continuing operations available to common stockholders for the period by the weighted average shares of common stock outstanding during the period. The income (loss) from continuing operations attributable to participating securities is deducted from our income (loss) from continuing operations attributable to common stockholders to determine the income (loss) from continuing operations available to common stockholders. We calculate diluted earnings per share of common stock by adjusting weighted average outstanding shares of common stock, assuming conversion of all potentially dilutive stock securities, using the treasury stock method; but we had no dilutive stock securities outstanding as of December 31, 2019, nor at any time during the two year period then ended. Unvested shares of common stock issued under our Share Award Plans are deemed participating securities because they participate equally in earnings and losses with all of our other shares of common stock. The following table presents a reconciliation of income (loss) from continuing operations to income (loss) from continuing operations available to common stockholders and the related earnings per share of common stock. Year Ended December 31, 2019 2018 Income (loss) from continuing operations $ 33,469 $ (2,773) Less: net income for noncontrolling interest 124 149 Income (loss) from continuing operations attributable to common stockholders 33,345 (2,922) Less: income (loss) from continuing operations attributable to participating securities 1,301 (125) Income (loss) from continuing operations available to common stockholders $ 32,044 $ (2,797) Weighted average shares of common stock (1) 7,783 7,649 Basic and diluted income (loss) per share of common stock from continuing operations attributable to common stockholders $ 4.12 $ (0.37) (1) Reflects the retrospective adjustment related to the reverse stock split completed on August 1, 2019, and excludes unvested shares of common stock awarded under our Share Award Plans, which shares of common stock are considered participating securities because they participate equally in earnings and losses with all of our other shares of common stock. The weighted average number of unvested shares of common stock outstanding was 316 and 341 for the years ended December 31, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We had a tax provision of $4,339 for the year ended December 31, 2019, and a tax benefit of $1,574 for the year ended December 31, 2018. Effective Tax Rate Reconciliation Year Ended December 31, 2019 2018 U.S. federal statutory rate applied to income (loss) before income taxes and discontinued operations $ (7,940) $ 994 State income taxes, net of federal benefit 635 (2,957) Benefit of tax credits 4,020 3,977 Provision to return adjustments (31) 560 Nondeductible executive compensation (109) (210) Other nondeductible expenses (530) (430) Other, net (384) (360) Total (provision) benefit for income taxes $ (4,339) $ 1,574 Components of the (Provision) Benefit For Income Taxes Year Ended December 31, 2019 2018 Current tax benefit: Federal $ 1,019 $ 1,737 State 352 240 Total current tax benefit 1,371 1,977 Deferred tax provision: Federal (6,163) 3,581 State 453 (3,984) Total deferred tax provision (5,710) (403) Total (provision) benefit for income taxes $ (4,339) $ 1,574 Components of Deferred Tax Assets and Liabilities December 31, 2019 2018 Deferred tax assets: Tax loss carryforwards $ 63,185 $ 76,250 Tax credit carryforwards 35,624 31,377 Leasing arrangements 32,007 55,929 Reserves 18,204 16,186 Asset retirement obligations 1,278 625 Other 704 488 Total deferred tax assets before valuation allowance 151,002 180,855 Valuation allowance (1,209) (1,310) Total deferred tax assets 149,793 179,545 Deferred tax liabilities: Property and equipment (102,051) (97,306) Goodwill and intangible assets (3,708) (3,374) Total deferred tax liabilities (105,759) (100,680) Net deferred tax assets $ 44,034 $ 78,865 As of December 31, 2019 and 2018, we had a valuation allowance of $1,209 and $1,310, respectively, related to foreign credit carryforwards, state net operating losses and deferred tax assets in foreign jurisdictions due to the uncertainty of their realization. At December 31, 2019, we had carryforwards for federal net operating losses, state net operating losses and federal tax credits of $264,143, $183,561 and $35,624, respectively. Although not anticipated, $3,600 of the federal net operating losses are scheduled to expire in 2030 if unused. We anticipate $81 of the state net operating losses will expire in 2020 and $50 will expire in 2021; if not utilized, a portion of the state net operating losses may need to be written off; however, a valuation allowance relating to these losses has been recorded. Although not anticipated, the remaining state net operating losses are scheduled to begin to expire in 2022 if unused. Federal tax credit carryforwards of $434 may expire between 2021 and 2024 if unused, with the remainder expected to be utilized prior to their expiration beginning in 2030. The net deferred tax assets presented in the table above are included in other noncurrent assets in our consolidated balance sheets. |
Equity Investments
Equity Investments | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | Equity Investments As of December 31, 2019 and 2018, our investment in equity affiliates, which is presented in our consolidated balance sheets in other noncurrent assets, and our proportional share of our investees' net income (loss), which is included in other (income) expense, net in our consolidated statements of operations and comprehensive income (loss), were as follows: PTP Other (1) Total Investment balance: As of December 31, 2019 $ 24,517 $ 5,983 $ 30,500 As of December 31, 2018 21,260 18,805 40,065 Income (loss) from equity investments: Year ended December 31, 2019 $ 5,657 $ (4,750) $ 907 Year ended December 31, 2018 3,652 (5,679) (2,027) (1) Includes our investments in Affiliates Insurance Company, or AIC, and QuikQ LLC, or QuikQ. Petro Travel Plaza Holdings LLC Petro Travel Plaza Holdings LLC, or PTP, is a joint venture between us and Tejon Development Corporation that owns two travel centers, three convenience stores and one standalone restaurant in California. We own a 40.0% interest in PTP and we receive a management fee from PTP to operate these locations. We recognized management fee income of $849 and $1,562 for the years ended December 31, 2019 and 2018, respectively, which is included in nonfuel revenues in our consolidated statements of operations and comprehensive income (loss). QuikQ LLC QuikQ is a joint venture between us and Love's Travel Stops and Country Stores, Inc. QuikQ is an independent full-service fuel payment solutions provider. We own a 50.0% interest in QuikQ. Affiliates Insurance Company We, SVC and five other companies to which RMR provides management services each currently own 14.3% of AIC, an Indiana insurance company. Although we own less than 20% of AIC, we use the equity method to account for this investment because we believe that we have significant influence over AIC because a majority of our Directors, and one of our employees, are also directors of AIC. AIC is in the process of dissolving. In connection with its dissolution, we and each of the other AIC shareholders received a capital distribution of $9,000 in December 2019. Summarized Financial Information The following table sets forth summarized financial information of our equity investments and does not represent the amounts we have included in our consolidated statements of operations and comprehensive income (loss) in connection with our equity investments. Year Ended December 31, 2019 2018 Total revenues $ 126,750 $ 125,448 Cost of goods sold (excluding depreciation) 80,579 87,189 Income from operations 9,259 2,742 Net income 7,206 1,363 Fair Value It is not practicable to estimate the fair value of our equity investments because of the lack of quoted market prices and the inability to estimate current fair value without incurring excessive costs. However, management believes that the carrying amounts of our equity investments at December 31, 2019, were not impaired given these companies' overall financial condition and earnings trends. |
Business Management Agreement w
Business Management Agreement with RMR | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |
Business Management Agreement with RMR | Related Party Transactions We have relationships and historical and continuing transactions with SVC, RMR, ABP Trust, Adam D. Portnoy and others related to them, including other companies to which RMR or its subsidiaries provide management services and some of which have directors, trustees or officers who are also our Directors or officers. Relationship with SVC We are SVC's largest tenant and SVC is our principal landlord and largest stockholder and as of December 31, 2019, owned 684 shares of our common stock, representing approximately 8.2% of our outstanding shares of common stock. RMR provides management services to both us and SVC and Adam D. Portnoy, the Chair of our Board of Directors and one of our Managing Directors, also serves as the chair of the boards of trustees or boards of directors of several of the other public companies to which RMR provides management services and as a managing trustee or managing director of all these companies, including serving as the chair of the board of trustees and as a managing trustee of SVC. Ethan S. Bornstein, Adam D. Portnoy's brother-in-law, is an executive officer of SVC. See Note 9 for more information about our lease agreements and transactions with SVC. Spin-Off Transaction Agreement. In connection with our spin-off from SVC in 2007, we entered a transaction agreement with SVC and RMR, pursuant to which we granted SVC a right of first refusal to purchase, lease, mortgage or otherwise finance any interest we own in a travel center before we sell, lease, mortgage or otherwise finance that travel center to or with another party, and we granted SVC and any other company to which RMR provides management services a right of first refusal to acquire or finance any real estate of the types in which SVC or such other companies invest before we do. We also agreed that for so long as we are a tenant of SVC we will not permit: the acquisition by any person or group of beneficial ownership of 9.8% or more of the voting shares or the power to direct the management and policies of us or any of our subsidiary tenants or guarantors under the SVC Leases; the sale of a material part of our assets or of any such tenant or guarantor; or the cessation of certain of our Directors to continue to constitute a majority of our Board of Directors or any such tenant or guarantor. Also, we agreed not to take any action that might reasonably be expected to have a material adverse impact on SVC's ability to qualify as a real estate investment trust and to indemnify SVC for any liabilities it may incur relating to our assets and business. Lease Arrangements. As of December 31, 2019, we leased from SVC a total of 179 properties under the SVC Leases. We have also engaged in other transactions with SVC, including in connection with the Transaction Agreements. See Notes 3 and 9 for more information about our relationship, agreements and transactions with SVC. Our Manager, RMR RMR provides certain services we require to operate our business. We have a business management agreement with RMR to provide management services to us, which relates to various aspects of our business generally. See Note 13 for more information about our business management agreement with RMR. Adam D. Portnoy is the sole trustee, an officer and the controlling shareholder of ABP Trust, which is the controlling shareholder of The RMR Group Inc., a managing director and the president and chief executive officer of The RMR Group Inc. and an officer and employee of RMR. Both of our Managing Directors and our Chief Executive Officer, President and Chief Operating Officer, Executive Vice President, Chief Financial Officer and Treasurer, Executive Vice President and General Counsel, and Secretary are officers and employees of RMR. The RMR Group Inc. is the managing member of RMR. As of December 31, 2019, RMR owned 299 shares of our common stock, representing approximately 3.6% of our outstanding shares of common stock. See Note 13 for more information about our relationship with RMR. Stock Awards to RMR Employees. We award shares of common stock to certain employees of RMR who are not also Directors, officers or employees of ours. During the years ended December 31, 2019 and 2018, we awarded to such persons a total of 20 and 10 of our shares of common stock valued at $184 and $228, in aggregate, respectively, based upon the closing prices of our shares of common stock on the Nasdaq on the dates the awards were made. These share awards to RMR employees are in addition to the fees we paid to RMR and the stock awards to our Directors, officers and employees (some of whom are also officers and employees of RMR). See Note 10 for more information regarding our stock awards and activity as well as certain stock purchases we made in connection with stock award recipients satisfying tax withholding obligations on vesting stock awards. Relationship with AIC We, SVC and five other companies to which RMR provides management services each currently own 14.3% of AIC, an Indiana insurance company. We and the other AIC shareholders historically participated in a combined property insurance program arranged and reinsured in part by AIC. The policies under that program expired on June 30, 2019, and we and the other AIC shareholders elected not to renew the AIC property insurance program; we have instead purchased standalone property insurance coverage with unrelated third party insurance providers. We paid aggregate premiums, including taxes and fees, of $2,502 and $1,721, respectively, in connection with this insurance program for the policy years ended June 30, 2019 and 2018, respectively. Our investment in AIC had a carrying value of $298 and $8,632 as of December 31, 2019 and 2018, respectively. These amounts are included in other noncurrent assets in our consolidated balance sheets. We recognized income of $575 and $516 related to our investment in AIC for the years ended December 31, 2019 and 2018, respectively, and $664 during the year ended December 31, 2019, related to previously unrealized gains and losses on securities held for sale, which amounts are included in other (income) expense, net in our consolidated statements of operations and comprehensive income (loss). Our other comprehensive loss attributable to common stockholders includes our proportional share of unrealized gains and losses on securities held for sale, which are owned by AIC, of $91 and $69 for the years ended December 31, 2019 and 2018, respectively. Our other comprehensive loss attributable to common stockholders for the year ended December 31, 2019, also includes the reclassification to other (income) expense, net of the $664 previously unrealized gains and losses on securities held for sale. RMR historically provided management and administrative services to AIC for a fee equal to 3.0% of the total premiums paid for insurance arranged by AIC. As a result of the property insurance program having been discontinued, AIC has not occurred fees payable to RMR since that time. AIC is in the process of dissolving. See Note 12 for more information regarding our investment in AIC. Directors' and Officers' Liability Insurance We, The RMR Group Inc., RMR and certain companies to which RMR or its subsidiaries provide management services, including SVC, participate in a combined directors' and officers' liability insurance policy. The current combined policy expires in September 2020. We paid aggregate premiums of $122 and $157 in the years ended December 31, 2019 and 2018, respectively, for these policies. Executive Officer Retirements In December 2019, we and RMR entered into a retirement agreement with our former Managing Director and Chief Executive Officer, Andrew J. Rebholz. Pursuant to his retirement agreement, Mr. Rebholz will continue to serve, through June 30, 2020, as a non-executive employee in order to assist in transitioning his duties and responsibilities to his successor. Under Mr. Rebholz’s retirement agreement, consistent with past practice, we will continue to pay Mr. Rebholz his current annual base salary of $300 until June 30, 2020, and we paid Mr. Rebholz a cash bonus in respect of 2019 in the amount of $1,000 in December 2019. Subject to the satisfaction of certain other conditions, after his retirement on June 30, 2020, we will make an additional cash payment to Mr. Rebholz in the amount of $1,000 and fully accelerate the vesting of any of our unvested shares of common stock previously awarded to Mr. Rebholz. Pursuant to his retirement agreement, Mr. Rebholz granted us or our nominee a first right of refusal in the event he determines to sell any of our shares of common stock that he owns, pursuant to which we may elect during a specified period to purchase those shares of common stock at the average closing price per share of common stock for the 10 trading days preceding the date of his written notice to us of his intent to sell. In the event that we decline to exercise our purchase right, RMR may elect to purchase such shares of common stock at the price offered to us. Mr. Rebholz also agreed that, as long as he owns our shares of common stock, he will vote those shares of common stock at stockholders’ meetings in favor of nominees for director and proposals recommended by the Board. Mr. Rebholz’s retirement agreement contains other terms and conditions, including cooperation, confidentiality, non-solicitation, non-competition and other covenants, and a waiver and release. Mr. Rebholz’s retirement agreement also contains certain terms relating to RMR and other companies to which RMR or its affiliate provides management services. In November 2017, we entered into a retirement agreement with our then Managing Director, President and Chief Executive Officer, Thomas M. O’Brien. Mr. O’Brien resigned those positions on December 31, 2017, and he remained a non-executive employee of ours until June 30, 2018, in accordance with his retirement agreement. During the year ended December 31, 2018, we accelerated the vesting of previously granted stock awards and made an additional cash payment to Mr. O'Brien resulting in additional compensation expense of $3,571. |
RMR | Affiliated entity | |
Related Party Transaction [Line Items] | |
Business Management Agreement with RMR | Business Management Agreement with RMR We have a business management agreement with RMR to provide management services to us, which relates to various aspects of our business generally, including but not limited to, services related to compliance with various laws and rules applicable to our status as a publicly traded company, advice and supervision with respect to our travel centers, site selection for properties on which new travel centers may be developed, identification of, and purchase negotiation for, travel center properties and companies, accounting and financial reporting, capital markets and financing activities, investor relations and general oversight of our daily business activities, including legal matters, human resources, insurance programs, management information systems and the like. See Note 14 for more information regarding our relationship, agreements and transactions with RMR. Under our business management agreement, we pay RMR an annual business management fee equal to 0.6% of the sum of our fuel gross margin (which is our fuel revenues less our fuel cost of goods sold) plus our total nonfuel revenues. The fee is payable monthly and totaled $13,409 and $14,570 for the years ended December 31, 2019 and 2018, respectively. These amounts are included in selling, general and administrative expense and loss from discontinued operations, net of taxes in our consolidated statements of operations and comprehensive income (loss). The current term of our business management agreement with RMR ends on December 31, 2020, and automatically renews for successive one year terms unless we or RMR gives notice of non-renewal before the end of an applicable term. RMR may terminate the business management agreement upon 120 days' written notice, and we may terminate upon 60 days' written notice, subject to approval by a majority vote of our Independent Directors. If we terminate or do not renew the business management agreement other than for cause, as defined, we are obligated to pay RMR a termination fee equal to 2.875 times the annual base management fee and the annual internal audit services expense, which amounts are based on averages during the 24 consecutive calendar months prior to the date of notice of termination or nonrenewal. We are also generally responsible for all of our expenses and certain expenses incurred or arranged by RMR on our behalf. RMR also provides internal audit services to us in return for our share of the total internal audit costs incurred by RMR for us and other publicly owned companies to which RMR or its subsidiaries provide management services, which amounts are subject to approval by our Compensation Committee. Our Audit Committee appoints our Director of Internal Audit and our Compensation Committee approves our portion of RMR's internal audit costs. The amounts recognized as expense for internal audit costs were $284 and $236 for the years ended December 31, 2019 and 2018, respectively. These amounts are included in selling, general and administrative expense in our consolidated statements of operations and comprehensive income (loss) and are in addition to the business management fees paid to RMR. Pursuant to our business management agreement, RMR may from time to time negotiate on our behalf with certain third party vendors and suppliers for the procurement of services to us. As part of this arrangement, we may enter agreements with RMR and other companies to which RMR provides management services for the purpose of obtaining more favorable terms from such vendors and suppliers. RMR has agreed to provide certain transition services to us for 120 days following termination by us or notice of termination by RMR. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We have relationships and historical and continuing transactions with SVC, RMR, ABP Trust, Adam D. Portnoy and others related to them, including other companies to which RMR or its subsidiaries provide management services and some of which have directors, trustees or officers who are also our Directors or officers. Relationship with SVC We are SVC's largest tenant and SVC is our principal landlord and largest stockholder and as of December 31, 2019, owned 684 shares of our common stock, representing approximately 8.2% of our outstanding shares of common stock. RMR provides management services to both us and SVC and Adam D. Portnoy, the Chair of our Board of Directors and one of our Managing Directors, also serves as the chair of the boards of trustees or boards of directors of several of the other public companies to which RMR provides management services and as a managing trustee or managing director of all these companies, including serving as the chair of the board of trustees and as a managing trustee of SVC. Ethan S. Bornstein, Adam D. Portnoy's brother-in-law, is an executive officer of SVC. See Note 9 for more information about our lease agreements and transactions with SVC. Spin-Off Transaction Agreement. In connection with our spin-off from SVC in 2007, we entered a transaction agreement with SVC and RMR, pursuant to which we granted SVC a right of first refusal to purchase, lease, mortgage or otherwise finance any interest we own in a travel center before we sell, lease, mortgage or otherwise finance that travel center to or with another party, and we granted SVC and any other company to which RMR provides management services a right of first refusal to acquire or finance any real estate of the types in which SVC or such other companies invest before we do. We also agreed that for so long as we are a tenant of SVC we will not permit: the acquisition by any person or group of beneficial ownership of 9.8% or more of the voting shares or the power to direct the management and policies of us or any of our subsidiary tenants or guarantors under the SVC Leases; the sale of a material part of our assets or of any such tenant or guarantor; or the cessation of certain of our Directors to continue to constitute a majority of our Board of Directors or any such tenant or guarantor. Also, we agreed not to take any action that might reasonably be expected to have a material adverse impact on SVC's ability to qualify as a real estate investment trust and to indemnify SVC for any liabilities it may incur relating to our assets and business. Lease Arrangements. As of December 31, 2019, we leased from SVC a total of 179 properties under the SVC Leases. We have also engaged in other transactions with SVC, including in connection with the Transaction Agreements. See Notes 3 and 9 for more information about our relationship, agreements and transactions with SVC. Our Manager, RMR RMR provides certain services we require to operate our business. We have a business management agreement with RMR to provide management services to us, which relates to various aspects of our business generally. See Note 13 for more information about our business management agreement with RMR. Adam D. Portnoy is the sole trustee, an officer and the controlling shareholder of ABP Trust, which is the controlling shareholder of The RMR Group Inc., a managing director and the president and chief executive officer of The RMR Group Inc. and an officer and employee of RMR. Both of our Managing Directors and our Chief Executive Officer, President and Chief Operating Officer, Executive Vice President, Chief Financial Officer and Treasurer, Executive Vice President and General Counsel, and Secretary are officers and employees of RMR. The RMR Group Inc. is the managing member of RMR. As of December 31, 2019, RMR owned 299 shares of our common stock, representing approximately 3.6% of our outstanding shares of common stock. See Note 13 for more information about our relationship with RMR. Stock Awards to RMR Employees. We award shares of common stock to certain employees of RMR who are not also Directors, officers or employees of ours. During the years ended December 31, 2019 and 2018, we awarded to such persons a total of 20 and 10 of our shares of common stock valued at $184 and $228, in aggregate, respectively, based upon the closing prices of our shares of common stock on the Nasdaq on the dates the awards were made. These share awards to RMR employees are in addition to the fees we paid to RMR and the stock awards to our Directors, officers and employees (some of whom are also officers and employees of RMR). See Note 10 for more information regarding our stock awards and activity as well as certain stock purchases we made in connection with stock award recipients satisfying tax withholding obligations on vesting stock awards. Relationship with AIC We, SVC and five other companies to which RMR provides management services each currently own 14.3% of AIC, an Indiana insurance company. We and the other AIC shareholders historically participated in a combined property insurance program arranged and reinsured in part by AIC. The policies under that program expired on June 30, 2019, and we and the other AIC shareholders elected not to renew the AIC property insurance program; we have instead purchased standalone property insurance coverage with unrelated third party insurance providers. We paid aggregate premiums, including taxes and fees, of $2,502 and $1,721, respectively, in connection with this insurance program for the policy years ended June 30, 2019 and 2018, respectively. Our investment in AIC had a carrying value of $298 and $8,632 as of December 31, 2019 and 2018, respectively. These amounts are included in other noncurrent assets in our consolidated balance sheets. We recognized income of $575 and $516 related to our investment in AIC for the years ended December 31, 2019 and 2018, respectively, and $664 during the year ended December 31, 2019, related to previously unrealized gains and losses on securities held for sale, which amounts are included in other (income) expense, net in our consolidated statements of operations and comprehensive income (loss). Our other comprehensive loss attributable to common stockholders includes our proportional share of unrealized gains and losses on securities held for sale, which are owned by AIC, of $91 and $69 for the years ended December 31, 2019 and 2018, respectively. Our other comprehensive loss attributable to common stockholders for the year ended December 31, 2019, also includes the reclassification to other (income) expense, net of the $664 previously unrealized gains and losses on securities held for sale. RMR historically provided management and administrative services to AIC for a fee equal to 3.0% of the total premiums paid for insurance arranged by AIC. As a result of the property insurance program having been discontinued, AIC has not occurred fees payable to RMR since that time. AIC is in the process of dissolving. See Note 12 for more information regarding our investment in AIC. Directors' and Officers' Liability Insurance We, The RMR Group Inc., RMR and certain companies to which RMR or its subsidiaries provide management services, including SVC, participate in a combined directors' and officers' liability insurance policy. The current combined policy expires in September 2020. We paid aggregate premiums of $122 and $157 in the years ended December 31, 2019 and 2018, respectively, for these policies. Executive Officer Retirements In December 2019, we and RMR entered into a retirement agreement with our former Managing Director and Chief Executive Officer, Andrew J. Rebholz. Pursuant to his retirement agreement, Mr. Rebholz will continue to serve, through June 30, 2020, as a non-executive employee in order to assist in transitioning his duties and responsibilities to his successor. Under Mr. Rebholz’s retirement agreement, consistent with past practice, we will continue to pay Mr. Rebholz his current annual base salary of $300 until June 30, 2020, and we paid Mr. Rebholz a cash bonus in respect of 2019 in the amount of $1,000 in December 2019. Subject to the satisfaction of certain other conditions, after his retirement on June 30, 2020, we will make an additional cash payment to Mr. Rebholz in the amount of $1,000 and fully accelerate the vesting of any of our unvested shares of common stock previously awarded to Mr. Rebholz. Pursuant to his retirement agreement, Mr. Rebholz granted us or our nominee a first right of refusal in the event he determines to sell any of our shares of common stock that he owns, pursuant to which we may elect during a specified period to purchase those shares of common stock at the average closing price per share of common stock for the 10 trading days preceding the date of his written notice to us of his intent to sell. In the event that we decline to exercise our purchase right, RMR may elect to purchase such shares of common stock at the price offered to us. Mr. Rebholz also agreed that, as long as he owns our shares of common stock, he will vote those shares of common stock at stockholders’ meetings in favor of nominees for director and proposals recommended by the Board. Mr. Rebholz’s retirement agreement contains other terms and conditions, including cooperation, confidentiality, non-solicitation, non-competition and other covenants, and a waiver and release. Mr. Rebholz’s retirement agreement also contains certain terms relating to RMR and other companies to which RMR or its affiliate provides management services. In November 2017, we entered into a retirement agreement with our then Managing Director, President and Chief Executive Officer, Thomas M. O’Brien. Mr. O’Brien resigned those positions on December 31, 2017, and he remained a non-executive employee of ours until June 30, 2018, in accordance with his retirement agreement. During the year ended December 31, 2018, we accelerated the vesting of previously granted stock awards and made an additional cash payment to Mr. O'Brien resulting in additional compensation expense of $3,571. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Environmental Contingencies Extensive environmental laws regulate our operations and properties. These laws may require us to investigate and clean up hazardous substances, including petroleum or natural gas products, released at our owned and leased properties. Governmental entities or third parties may hold us liable for property damage and personal injuries, and for investigation, remediation and monitoring costs incurred in connection with any contamination and regulatory compliance at our locations. We use both underground storage tanks and above ground storage tanks to store petroleum products, natural gas and other hazardous substances at our locations. We must comply with environmental laws regarding tank construction, integrity testing, leak detection and monitoring, overfill and spill control, release reporting and financial assurance for corrective action in the event of a release. At some locations we must also comply with environmental laws relative to vapor recovery or discharges to water. Under the terms of the SVC Leases, we generally have agreed to indemnify SVC for any environmental liabilities related to properties that we lease from SVC and we are required to pay all environmental related expenses incurred in the operation of the leased properties. We have entered into certain other arrangements in which we have agreed to indemnify third parties for environmental liabilities and expenses resulting from our operations. From time to time we have received, and in the future likely will receive, notices of alleged violations of environmental laws or otherwise have become or will become aware of the need to undertake corrective actions to comply with environmental laws at our locations. Investigatory and remedial actions were, and regularly are, undertaken with respect to releases of hazardous substances at our locations. In some cases we have received, and may receive in the future, contributions to partially offset our environmental costs from insurers, from state funds established for environmental clean up associated with the sale of petroleum products or from indemnitors who agreed to fund certain environmental related costs at locations purchased from those indemnitors. To the extent we incur material amounts for environmental matters for which we do not receive or expect to receive insurance or other third party reimbursement and for which we have not previously recorded a liability, our operating results may be materially adversely affected. In addition, to the extent we fail to comply with environmental laws and regulations, or we become subject to costs and requirements not similarly experienced by our competitors, our competitive position may be harmed. At December 31, 2019, we had an accrued liability of $2,441 for environmental matters as well as a receivable for expected recoveries of certain of these estimated future expenditures of $574, resulting in an estimated net amount of $1,867 that we expect to fund in the future. We cannot precisely know the ultimate costs we may incur in connection with currently known environmental related violations, corrective actions, investigation and remediation; however, we do not expect the costs for such matters to be material, individually or in the aggregate, to our financial position or results of operations. We currently have insurance of up to $20,000 per incident and up to $20,000 in the aggregate for certain environmental liabilities, subject, in each case, to certain limitations and deductibles, which expires in June 2021. However, we can provide no assurance that we will be able to maintain similar environmental insurance coverage in the future on acceptable terms. We cannot predict the ultimate effect changing circumstances and changing environmental laws may have on us in the future or the ultimate outcome of matters currently pending. We cannot be certain that contamination presently unknown to us does not exist at our sites, or that a material liability will not be imposed on us in the future. If we discover additional environmental issues, or if government agencies impose additional environmental requirements, increased environmental compliance or remediation expenditures may be required, which could have a material adverse effect on us. Legal Proceedings We are routinely involved in various legal and administrative proceedings incidental to the ordinary course of business, including commercial disputes, employment related claims, wage and hour claims, premises liability claims and tax audits, among others. We do not expect that any litigation or administrative proceedings in which we are presently involved, or of which we are aware, will have a material adverse effect on our business, financial condition, results of operations or cash flows. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory at December 31, 2019 and 2018, consisted of the following: December 31, 2019 2018 Nonfuel products $ 161,560 $ 163,302 Fuel products 35,051 33,419 Total inventory $ 196,611 $ 196,721 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Segment Reporting | We manage our business as one segment. We make specific disclosures concerning fuel and nonfuel products and services because it facilitates our discussion of trends and operational initiatives within our business and industry. We have a single travel center located in a foreign country, Canada, that we do not consider material to our operations. |
Consolidation | Our consolidated financial statements include the accounts of TravelCenters of America Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated. We use the equity method of accounting for investments in entities when we have the ability to significantly influence, but not control, the investee's operating and financial policies, typically when we own 20% to 50% of the investee's voting stock. |
Basis of Presentation | The preparation of financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts. We record trade accounts receivable at the invoiced amount and those amounts do not bear interest. The recorded allowance for doubtful accounts is our best estimate of the amount of probable losses in our existing accounts receivable. We base the allowance on historical payment patterns, aging of accounts receivable, periodic review of customers' financial condition and actual write off history. We charge off account balances against the allowance when we believe it is probable the receivable will not be collected. |
Inventory | Inventory. We state our inventory at the lower of cost or net realizable value. We determine cost principally on the weighted average cost method. We maintain reserves for the estimated amounts of obsolete and excess inventory. These estimates are based on unit sales histories and on hand inventory quantities, known market trends for inventory items and assumptions regarding factors such as future inventory needs, our ability and the related cost to return items to our suppliers and our ability to sell inventory at a discount when necessary. |
Property and Equipment | Property and Equipment. We record property and equipment as a result of business combinations based on their fair values as of the date of the acquisition. We record all other property and equipment at cost. We depreciate our property and equipment on a straight line basis generally over the following estimated useful lives of the assets: Buildings and site improvements 10 to 40 years Machinery and equipment 3 to 15 years Furniture and fixtures 5 to 10 years We depreciate leasehold improvements over the shorter of the lives shown above or the remaining term of the underlying lease. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets. In a business combination we are required to record assets and liabilities acquired, including those intangible assets that arise from contractual or other legal rights or are otherwise capable of being separated or divided from the acquired entity, based on the fair values of the acquired assets and liabilities. Any excess of acquisition cost over the fair value of the acquired net identifiable assets is recognized as goodwill. We amortize the recorded costs of intangible assets with finite lives on a straight line basis over their estimated lives, principally the terms of the related contractual agreements. |
Impairment | Impairment. We review definite lived assets for indicators of impairment during each reporting period. We recognize impairment charges when (i) the carrying value of a long lived asset or asset group to be held and used in the business is not recoverable and exceeds its fair value and (ii) when the carrying value of a long lived asset or asset group to be disposed of exceeds the estimated fair value of the asset less the estimated cost to sell the asset. Our estimates of fair value are based on our estimates of likely market participant assumptions, including our current expectations for projected fuel sales volume, nonfuel revenues, fuel and nonfuel gross margins, site level operating expense and real estate rent expense. The discount rate is used to measure the present value of projected future cash flows and is set at a rate we believe is likely to be used by a market participant using a weighted average cost of capital method that considers market and industry data as well as our specific risk factors. The weighted average cost of capital is our estimate of the overall after tax rate of return required by equity and debt holders of a business enterprise. We use a number of assumptions and methods in preparing valuations underlying impairment tests including estimates of future cash flows and discount rates, and in some instances we may obtain third party appraisals. We recognize impairment charges in the period during which the circumstances surrounding an asset or asset group to be held and used have changed such that the carrying value is no longer recoverable, or during which a commitment to a plan to dispose of the asset or asset group is made. We perform our impairment analysis for substantially all of our property and equipment and operating lease assets at the individual site level because that is the lowest level of asset and liability groupings for which the cash flows are largely independent of the cash flows of other assets and liabilities. During 2019, based on our evaluation of certain low performing owned and leased standalone restaurants, we incurred impairment charges of $2,369 to our property and equipment and $579 to our operating lease assets. We assess intangible assets with definite lives for impairment annually or whenever events or changes in circumstances warrant a revision to the remaining period of amortization. Definite lived intangible assets primarily include our agreements with franchisees. For 2019, definite lived intangible assets were assessed using a qualitative analysis that was performed by assessing certain trends and factors, including actual sales, collection of royalties from franchisees and any changes in the manner in which the assets were used that could impact the values of the assets. During 2019, we did not record any impairment charges related to, or recognize a revision to the remaining period of amortization of, our definite lived intangible assets. We evaluate goodwill and indefinite lived intangible assets for impairment annually, or whenever events or changes in circumstances indicate the carrying amount may not be recoverable, using either a quantitative or qualitative analysis. Indefinite lived intangible assets consisted of trademarks and their fair value was determined using a relief from royalty method. We subject goodwill and indefinite lived intangible assets to further evaluation and recognize impairment charges when events and circumstances indicate the carrying value of the goodwill or indefinite lived intangible asset exceeds the fair market value of the asset. We evaluate indefinite lived intangible assets for impairment as of November 30, or more frequently if the circumstances warrant. During 2019, indefinite lived intangible assets were assessed using a qualitative analysis that was performed by assessing certain trends and factors, including actual sales and operating profit margins, discount rates, industry data and other relevant qualitative factors. These trends and factors were compared to, and based on, the assumptions used in the most recent quantitative assessment. During 2019, we did not record any impairment charges related to our indefinite lived intangible assets. We evaluate goodwill for impairment at the reporting unit level as of July 31, or more frequently if the circumstances warrant. We have two reporting units, which included our travel centers business and our QSL business, as of December 31, 2019. With respect to goodwill, if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we perform a goodwill impairment test to measure the amount of impairment to be recognized, if any. As of July 31, 2019, our annual goodwill impairment test for the travel centers and QSL reporting units was performed using a qualitative analysis, which included evaluating financial trends and industry and market conditions and assessing the reasonableness of the assumptions used in the most recent quantitative analysis, including comparing actual results to the projections used in the quantitative analysis. Based on our analyses, we concluded that as of July 31, 2019, our goodwill in those reporting units was not impaired. |
Share Based Employee Compensation | Stock Based Employee Compensation. We have historically granted awards of our shares of common stock under our share award plans. Stock awards issued to our Directors vest immediately. Stock awards made to others vest in five |
Environmental Remediation | Environmental Remediation. We record remediation charges and penalties when the obligation to remediate is probable and the amount of associated costs are reasonably determinable. We include remediation expense within site level operating expense in our consolidated statements of operations and comprehensive income (loss). Generally, the timing of remediation expense recognition coincides with completion of a feasibility study or the commitment to a formal plan of action. Accrued liabilities related to environmental matters are recorded on an undiscounted basis because of the uncertainty associated with the timing of the related future payments. In our consolidated balance sheets, the accrual for environmental matters is included in other noncurrent liabilities, with the amount estimated to be expended within the subsequent 12 months included in other current liabilities. We recognize a receivable for estimated future environmental costs that we may be reimbursed for within other noncurrent assets in our consolidated balance sheets. |
Self Insurance Accruals | Self Insurance Accruals. For insurance programs for which we pay deductibles and for which we are partially self insured up to certain stop loss amounts, we establish accruals for both estimated losses on known claims and potential claims incurred but not reported, based on claims histories and using actuarial methods. In our consolidated balance sheets, the accrual for self- insurance costs is included in other noncurrent liabilities, with the amount estimated to be expended within the subsequent 12 months included in other current liabilities. |
Asset Retirement Obligations | Asset Retirement Obligations. We recognize the future costs for our obligations related to the removal of our underground storage tanks and certain improvements we own at leased properties over the estimated useful lives of each asset requiring removal. We record a liability for the fair value of an asset retirement obligation with a corresponding increase to the carrying value of the related long lived asset at the time such an asset is installed. We base the estimated liability on our historical experiences in removing these assets, their estimated useful lives, external estimates as to the cost to remove the assets in the future and regulatory or contractual requirements. The liability is a discounted liability using a credit adjusted risk free rate. |
Leasing Transactions | Leasing Transactions. Leasing transactions are a material part of our business. We have lease agreements covering many of our properties, as well as various equipment, with the most significant leases being our five leases with Service Properties Trust (formerly known as Hospitality Properties Trust), or SVC. We recognize operating lease assets and liabilities for all leases with an initial term greater than 12 months. Leases with an initial term of 12 months or less are not recognized in our consolidated balance sheets. Our operating lease liabilities represent the present value of our unpaid lease payments. The discount rate used to derive the present value of unpaid lease payments is based on the rates implicit in our leases with SVC and our incremental borrowing rate for all other leases. Certain of our leases include renewal options and purchase options. Renewal periods are included in calculating our operating lease assets and liabilities when they are reasonably certain. |
Income Taxes | Income Taxes. We establish deferred income tax assets and liabilities to reflect the future tax consequences of differences between the tax basis and financial statement basis of assets and liabilities. We reduce the measurement of deferred tax assets, if necessary, by a valuation allowance when it is more likely than not that the deferred tax asset will not be realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. We evaluate and adjust these tax positions based on changing facts and circumstances. For tax positions meeting the more likely than not threshold, the amount we recognize in the financial statements is the largest benefit that we estimate has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. |
Reclassifications | Reclassifications. Certain prior year amounts have been reclassified to be consistent with the current year presentation within our consolidated financial statements. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update 2016-02, Leases, or ASU 2016-02, which established a comprehensive lease standard under GAAP for virtually all industries. In August 2018, the FASB issued Accounting Standards Update 2018-11, Targeted Improvements to ASC 842, or ASU 2018-11, which allowed companies to adopt the standard using the modified retrospective transition method. ASU 2016-02 and 2018-11 are collectively referred to as ASC 842. ASC 842 requires lessees to apply a dual approach, classifying leases as either finance or operating leases. This classification determines whether the lease expense is recognized based on the effective interest method or on a straight line basis over the term of the lease. A lessee is also required to recognize a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. We adopted ASC 842 on January 1, 2019, using the modified retrospective transition method, and elected to not restate prior year comparative periods. We elected to adopt the package of practical expedients; accordingly, we retained the lease classification and initial direct costs for any leases that existed prior to adoption and we did not revisit whether any existing or expired contracts contain leases. See Note 9 for more information about the impact of ASC 842. In June 2018, the FASB issued Accounting Standards Update 2018-07, Compensation - Stock Compensation , or ASU 2018-07, which aligns the accounting for stock based payments to nonemployees with the accounting for stock based payments to employees. We adopted ASU 2018-07 on January 1, 2019, using the modified retrospective transition method, which had no impact on our prior year comparative period. Historically, compensation expense related to stock awards granted to nonemployees was determined based on the vesting date fair value. Under ASU 2018-07, compensation expense relating to all stock awards is now measured at the grant date fair value and amortized to expense over the period of time over which the stock based payments vest. Upon adoption of ASU 2018-07, stock awards to nonemployees were remeasured using the adoption date fair value, or the market value of our shares of common stock as of January 1, 2019. We include stock based compensation expense in selling, general and administrative expense in our consolidated statements of operations and comprehensive income (loss). In August 2018, the FASB issued Accounting Standards Update 2018-15, Intangibles - Goodwill and Other - Internal-Use Software, |
Revenue Recognition | We recognize revenues based on the consideration specified in the contract with the customer, excluding any sales incentives (such as customer loyalty programs and customer rebates) and amounts collected on behalf of third parties (such as sales and excise taxes). The majority of our revenues are generated at the point of sale in our retail locations. Revenues consist of fuel revenues, nonfuel revenues and rent and royalties from franchisees. Fuel Revenues. We recognize fuel revenues and the related costs at the time of sale to customers at our company operated locations. We sell diesel fuel and gasoline to our customers at prices that we establish daily or are indexed to market prices and reset daily. We sell diesel fuel under pricing arrangements with certain customers. For the year ended December 31, 2019, approximately 86.4% of our diesel fuel volume was sold at discounts to posted prices under pricing arrangements with our fleet customers, some of which include rebates payable to the customer after the end of the period. Nonfuel Revenues. We recognize nonfuel revenues and the related costs at the time of sale to customers at our company operated locations. We sell a variety of nonfuel products and services at stated retail prices in our travel centers and standalone restaurants, as well as through our RoadSquad®, TechOn-Site® and TA Commercial Tire Network™ programs. Truck repair and maintenance goods or services may be sold at discounted prices under pricing arrangements with certain customers, some of which include rebates payable to the customer after the end of the period. Rent and Royalties from Franchisees Revenues. We recognize franchise royalties and advertising fees from franchisees as revenue monthly based on the franchisees' sales data reported to us. Royalty revenues are contractual as a percentage of the franchisees' revenues and advertising fees are contractual as either a percentage of the franchisees' revenues or as a fixed amount. When we enter into a new franchise agreement or a renewal term with an existing franchisee, the franchisee is required to pay an initial or renewal franchise fee. Initial and renewal franchise fees are recognized as revenue on a straight line basis over the term of the respective franchise agreements. Other. Sales incentives and other promotional activities that we recognize as a reduction to revenues include, but are not limited to, the following: • Customer Loyalty Programs. We offer travel center trucking customers and casual restaurant diners the option to participate in our customer loyalty programs. Our customer loyalty programs provide customers with the right to earn loyalty awards on qualifying purchases that can be used for discounts on future purchases of goods or services. We apply a relative standalone selling price approach to our outstanding loyalty awards whereby a portion of each sale attributable to the loyalty awards earned is deferred and will be recognized as revenue in the category in which the loyalty awards are redeemed upon the redemption or expiration of the loyalty awards. Significant judgment is required to determine the standalone selling price for loyalty awards. Assumptions used in determining the standalone selling price include the historic redemption rate and the use of a weighted average selling price for fuel to calculate the revenues attributable to the customer loyalty awards. • Customer Discounts and Rebates. We enter into agreements with certain customers in which we agree to provide discounts on fuel and/or truck service purchases, some of which are structured as rebates payable to the customer after the end of the period. We recognize the cost of discounts against, and in the same period as, the revenues that generated the discounts earned. • Gift Cards. We sell branded gift cards. Sales proceeds are recognized as a contract liability; the liability is reduced and revenue is recognized when the gift card subsequently is redeemed for goods or services. Unredeemed gift card balances are recognized as revenues when the possibility of redemption becomes remote. |
Recently Issued Accounting Pronouncements, ASC 842 | On January 1, 2019, we adopted ASC 842 using the modified retrospective transition method and elected not to restate prior year comparative periods. We elected to adopt the package of practical expedients; accordingly, we retained the lease classification and initial direct costs for any leases that existed prior to adoption and we did not revisit whether any existing or expired contracts contain leases. On the date we adopted ASC 842, we recognized operating lease assets of $1,785,866 and operating lease liabilities of $1,996,957. We also recognized an adjustment to our beginning accumulated deficit of $86,243, net of taxes, consisting of (i) the previously recognized deferred gain on sale leaseback transactions of $113,712, (ii) the previously recognized liability for certain failed sale leaseback transactions recognized as financings of $1,591 and (iii) the related tax effect of $29,060. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of property and equipment, net | We depreciate our property and equipment on a straight line basis generally over the following estimated useful lives of the assets: Buildings and site improvements 10 to 40 years Machinery and equipment 3 to 15 years Furniture and fixtures 5 to 10 years Property and equipment, net as of December 31, 2019 and 2018, consisted of the following: December 31, 2019 2018 Machinery, equipment and furniture $ 533,380 $ 459,892 Land and improvements 316,751 177,322 Buildings and improvements 307,433 197,866 Leasehold improvements 271,451 242,469 Construction in progress 24,678 65,855 Property and equipment, at cost 1,453,693 1,143,404 Less: accumulated depreciation and amortization 585,190 514,867 Property and equipment, net $ 868,503 $ 628,537 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Nonfuel revenues disaggregated by type of good or service | Nonfuel revenues disaggregated by type of good or service for the years ended December 31, 2019 and 2018, were as follows: Year Ended December 31, 2019 2018 Nonfuel revenues: Store and retail services $ 756,854 $ 732,220 Truck service 674,203 671,385 Restaurant 425,090 416,736 Total nonfuel revenues $ 1,856,147 $ 1,820,341 |
Changes in contract liabilities between periods | The following table shows the changes in our contract liabilities between periods. Customer Other Total December 31, 2017 $ 15,165 $ 4,681 $ 19,846 Increases due to unsatisfied performance obligations arising during the period 81,517 10,083 91,600 Revenues recognized from satisfying performance obligations during the period (74,548) (10,064) (84,612) Other (6,644) (1,230) (7,874) December 31, 2018 15,490 3,470 18,960 Increases due to unsatisfied performance obligations arising during the period 103,228 12,982 116,210 Revenues recognized from satisfying performance obligations during the period (90,462) (10,519) (100,981) Other (10,263) (1,111) (11,374) December 31, 2019 $ 17,993 $ 4,822 $ 22,815 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Results of Operations for Discontinued Operations | The following table presents the results of operations for our discontinued operations for the year ended December 31, 2018. Year Ended Revenues $ 742,160 Cost of goods sold (excluding depreciation) 610,524 Site level operating expense 103,037 Selling, general and administrative expense 9,443 Real estate rent expense 2,206 Depreciation and amortization expense 20,418 Impairment of goodwill 69,340 Loss from discontinued operations before income taxes (72,808) Benefit for income taxes 14,789 Loss from discontinued operations, net of taxes (58,019) Loss on disposal (79,623) Benefit for income taxes 20,011 Loss from discontinued operations $ (117,631) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |
Schedule of components of property and equipment, net | We depreciate our property and equipment on a straight line basis generally over the following estimated useful lives of the assets: Buildings and site improvements 10 to 40 years Machinery and equipment 3 to 15 years Furniture and fixtures 5 to 10 years Property and equipment, net as of December 31, 2019 and 2018, consisted of the following: December 31, 2019 2018 Machinery, equipment and furniture $ 533,380 $ 459,892 Land and improvements 316,751 177,322 Buildings and improvements 307,433 197,866 Leasehold improvements 271,451 242,469 Construction in progress 24,678 65,855 Property and equipment, at cost 1,453,693 1,143,404 Less: accumulated depreciation and amortization 585,190 514,867 Property and equipment, net $ 868,503 $ 628,537 |
SVC | Principal landlord and largest stockholder | |
Property, Plant and Equipment [Line Items] | |
Schedule of components of property and equipment, net | The following table shows the amounts of property and equipment owned by SVC but recognized in property and equipment, net in our consolidated balance sheets, and included within the balances shown in the table above, as a result of the required accounting for the assets funded by SVC under the deferred tenant improvements allowance and as of December 31, 2018, for the assets that did not qualify for sale leaseback accounting. Upon adoption of ASC 842, these failed sale leasebacks were reclassified as operating leases and are included in operating lease assets in our consolidated balance sheet as of December 31, 2019. See Note 9 for more information about our leases with SVC. December 31, 2019 2018 Leasehold improvements $ 101,316 $ 114,195 Land and improvements — 14,945 Buildings and improvements — 9,943 Machinery, equipment and furniture — 3,282 Property and equipment, at cost 101,316 142,365 Less: accumulated depreciation and amortization 81,915 96,266 Property and equipment, net $ 19,401 $ 46,099 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of components of intangible assets, net | Intangible assets, net, as of December 31, 2019 and 2018, consisted of the following: December 31, 2019 Cost Accumulated Net Amortizable intangible assets: Agreements with franchisees $ 21,145 $ (13,350) $ 7,795 Leasehold interests 2,094 (2,094) — Other 3,913 (3,318) 595 Total amortizable intangible assets 27,152 (18,762) 8,390 Carrying value of trademarks (indefinite lives) 12,317 — 12,317 Intangible assets, net $ 39,469 $ (18,762) $ 20,707 December 31, 2018 Cost Accumulated Net Amortizable intangible assets: Agreements with franchisees $ 21,645 $ (12,308) $ 9,337 Leasehold interests 2,754 (2,183) 571 Other 3,913 (3,251) 662 Total amortizable intangible assets 28,312 (17,742) 10,570 Carrying value of trademarks (indefinite lives) 12,317 — 12,317 Intangible assets, net $ 40,629 $ (17,742) $ 22,887 |
Schedule of the aggregate amortization expense for amortizable intangible assets for each of the next five years | The aggregate amortization expense for our amortizable intangible assets as of December 31, 2019, for each of the next five years is: Total 2020 $ 1,152 2021 1,068 2022 961 2023 863 2024 848 |
Schedule of goodwill by reporting unit | Goodwill by reporting unit was as follows: December 31, 2019 2018 Travel centers business $ 22,213 $ 22,213 QSL business 3,046 3,046 Total goodwill $ 25,259 $ 25,259 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of components of other current liabilities | Other current liabilities as of December 31, 2019 and 2018, consisted of the following: December 31, 2019 2018 Taxes payable, other than income taxes $ 52,320 $ 42,985 Accrued wages and benefits 21,416 19,830 Customer loyalty program accruals 17,993 15,490 Self insurance program accruals, current portion 13,509 14,623 Accrued capital expenditures 4,721 7,742 Other 28,496 24,998 Total other current liabilities $ 138,455 $ 125,668 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt, net | Long term debt, net as of December 31, 2019 and 2018, consisted of the following: Interest Rate Maturity Date December 31, 2019 2018 2028 Senior Notes 8.25% January 15, 2028 $ 110,000 $ 110,000 2029 Senior Notes 8.00% December 15, 2029 120,000 120,000 2030 Senior Notes 8.00% October 15, 2030 100,000 100,000 Revolving Credit Facility 5.00% July 19, 2024 7,900 — Other long term debt 6.06% March 31, 2027 982 1,086 Deferred financing costs (9,561) (10,558) Total long term debt, net $ 329,321 $ 320,528 |
Leasing Transactions (Tables)
Leasing Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of lease costs as a lessee | For the year ended December 31, 2019, our lease costs consisted of the following: Classification in our Consolidated Year Ended Operating lease costs: SVC Leases Real estate rent expense $ 240,328 Operating lease costs: other Real estate rent expense 11,082 Variable lease costs: SVC Leases Real estate rent expense 5,203 Variable lease costs: other Real estate rent expense 1,149 Total real estate rent expense 257,762 Operating lease costs: equipment and other Site level operating expense and selling, general and administrative expense 3,088 Short-term lease costs Site level operating expense and selling, general and administrative expense 2,869 Sublease income Nonfuel revenues (2,180) Net lease costs $ 261,539 |
Schedule of maturities of operating lease liabilities with remaining noncancelable lease terms in excess of one year | Maturities of our operating lease liabilities that had remaining noncancelable lease terms in excess of one year as of December 31, 2019, were as follows: SVC Leases (1) Other Total Years ended December 31: 2020 $ 271,336 $ 6,548 $ 277,884 2021 270,799 5,555 276,354 2022 268,936 4,439 273,375 2023 255,344 3,107 258,451 2024 251,150 1,813 252,963 Thereafter 2,034,504 7,724 2,042,228 Total operating lease payments 3,352,069 29,186 3,381,255 Less: present value discount (2) (1,391,435) (5,562) (1,396,997) Present value of operating lease liabilities $ 1,960,634 $ 23,624 $ 1,984,258 (1) Includes rent for properties we sublease from SVC and pay directly to SVC's landlords. (2) The discount rate used to derive the present value of unpaid lease payments is based on the rates implicit in the SVC Leases and our incremental borrowing rate for all other leases. |
Schedule of operating lease assets and liabilities | As of December 31, 2019, our operating lease assets and liabilities consisted of the following: SVC Leases Other Total Operating lease assets $ 1,796,406 $ 21,592 $ 1,817,998 Current operating lease liabilities 98,574 5,496 104,070 Noncurrent operating lease liabilities 1,862,060 18,128 1,880,188 |
Schedule of future minimum operating lease payments | As previously disclosed in our 2018 Annual Report and under the previous lease accounting standard, future minimum lease payments required under leases that had remaining noncancelable lease terms in excess of one year as of December 31, 2018, were as follows (included herein are the full payments then due under the SVC Leases, including the amount attributed to the lease of those sites that were accounted for as a financing as of December 31, 2018, in our consolidated balance sheet as reflected in the sale leaseback financing obligations): Total Years ended December 31: 2019 $ 302,855 2020 301,220 2021 299,393 2022 296,551 2023 295,534 Thereafter 1,980,078 Total $ 3,475,631 |
Principal landlord and largest stockholder | SVC | |
Related Party Transaction [Line Items] | |
Schedule of annual minimum rent and deferred rent under the SVC Leases | The number of properties leased, the terms, the annual minimum rent and the deferred rent balances owed by us under the SVC Leases, as of December 31, 2019, were as follows: Number Initial Term End Date (1) Annual Minimum Deferred Rent (2) TA Lease 1 36 December 31, 2032 $ 49,707 $ 15,148 TA Lease 2 36 December 31, 2031 44,077 14,068 TA Lease 3 35 December 31, 2029 42,409 13,870 TA Lease 4 37 December 31, 2033 46,067 14,161 Petro Lease 35 June 30, 2035 61,654 — Total 179 $ 243,914 $ 57,247 (1) We have two renewal options of 15 years each under each of the SVC Leases. (2) Commencing April 1, 2019, we began to pay SVC $70,458 in 16 equal quarterly installments of $4,404 each for deferred rent we owe SVC. Under our rent deferral agreement with SVC, deferred rent shall be accelerated and interest shall begin to accrue thereon at 1.0% per month on the deferred rent amounts if certain events occur, including: our default under the SVC Leases; a change of control of us, as defined in the rent deferral agreement; or our declaration or payment of a dividend or other distribution in respect of our common stock. The total amount of deferred rent outstanding as of December 31, 2019, was $57,247. |
Schedule of various amounts related to SVC Leases included in the consolidated balance sheet | The following table summarizes the various amounts related to the SVC Leases that are included in our consolidated balance sheet as of December 31, 2018. December 31, Current SVC Leases liabilities: Accrued rent $ 24,721 Sale leaseback financing obligations (1) 1,032 Straight line rent accrual (2) 2,458 Deferred gain (3) 10,128 Deferred tenant improvements allowance (4) 3,770 Total current SVC Leases liabilities $ 42,109 Noncurrent SVC Leases liabilities: Deferred rent obligation (5) $ 150,000 Sale leaseback financing obligations (1) 22,365 Straight line rent accrual (2) 46,431 Deferred gain (3) 100,913 Deferred tenant improvements allowance (4) 34,047 Total noncurrent SVC Leases liabilities $ 353,756 (1) Sale Leaseback Financing Obligations. As of December 31, 2018, the assets related to two travel centers we leased from SVC were reflected in our consolidated balance sheet, as were the related financing obligations. This accounting was required primarily because, at the time of the inception of the prior leases with SVC, more than a minor portion of these two travel centers was subleased to third parties. Upon adoption of ASC 842, these failed sale leasebacks were reclassified as operating leases, which resulted in a gain that was recognized in our beginning accumulated deficit as of January 1, 2019. See above for more information about the impact of adopting ASC 842. (2) Straight Line Rent Accrual. As of December 31, 2018, the straight line rent accrual included the accrued rent expense from 2007 to 2012 for stated increases in our annual minimum rent due under our then existing TA Lease. The TA Leases we entered into in connection with a transaction agreement we entered into with SVC in 2015 contain no stated rent payment increases. Prior to the adoption of ASC 842, we amortized this accrual on a straight line basis over the current terms of the TA Leases as a reduction of real estate rent expense. The straight line rent accrual also included our obligation for the estimated cost of removing underground storage tanks at properties leased from SVC at the end of the related lease; we recognized these obligations on a straight line basis over the term of the related leases as additional real estate rent expense. As of January 1, 2019, the straight line rent accrual was reclassified as a reduction to our operating lease assets and the obligation for the estimated cost of removal of underground storage tanks was reclassified to other noncurrent liabilities. As of December 31, 2019, our obligation for the estimated cost of removal of underground storage tanks was $22,216. (3) Deferred Gain. The deferred gain primarily included $145,462 of gains from the sales of travel centers and certain other assets to SVC during 2015 and 2016. Prior to the adoption of ASC 842, we amortized the deferred gains on a straight line basis over the terms of the related leases as a reduction of real estate rent expense. Upon adoption of ASC 842, we recognized the unamortized deferred gain of $85,053, net of taxes, in our beginning accumulated deficit as of January 1, 2019. See above for more information about the impact of adopting ASC 842. (4) Deferred Tenant Improvements Allowance. SVC funded certain capital projects at the properties we lease under the SVC Leases without an increase in rent payable by us. In connection with SVC's initial capital commitment, we recognized a liability for rent deemed to be related to this capital commitment as a deferred tenant improvements allowance. Prior to the adoption of ASC 842, we amortized the deferred tenant improvements allowance on a straight line basis over the terms of the SVC Leases as a reduction of real estate rent expense. Upon the adoption of ASC 842, the unamortized balance of the deferred tenant improvements allowance was reclassified as a reduction to our operating lease assets as of January 1, 2019. (5) Deferred Rent Obligation . Pursuant to a rent deferral agreement with SVC, we previously deferred as of December 31, 2010, a total of $150,000 of rent payable to SVC, which remained outstanding as of December 31, 2018, and had been due in five installments between 2024 and 2030. Upon the adoption of ASC 842, these future lease payments were included in our calculation of our operating lease assets and liabilities and the deferred rent obligation was reclassified as a reduction to our operating lease assets as of January 1, 2019. In January 2019, as described above and pursuant to the terms of the Transaction Agreements, our deferred rent obligation was reduced to $70,458, payable in 16 equal quarterly installments commencing on April 1, 2019, and our operating lease assets and liabilities were remeasured using these revised payment amounts. The total amount of deferred rent outstanding as of December 31, 2019, was $57,247. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of number and weighted average grant date fair value of unvested shares of common stock and shares of common stock awarded under the Share Award Plans | The following table sets forth the number and weighted average grant date fair value of unvested shares of common stock and shares of common stock awarded under the Share Award Plans for the year ended December 31, 2019. Number of Weighted Average Unvested shares of common stock as of December 31, 2018 316 $ 27.44 Granted 270 9.78 Vested (168) 22.15 Forfeited/canceled (6) 26.57 Unvested shares of common stock as of December 31, 2019 412 18.03 |
Reconciliation of income (loss) from continuing operations to income (loss) from continuing operations available to common stockholders | The following table presents a reconciliation of income (loss) from continuing operations to income (loss) from continuing operations available to common stockholders and the related earnings per share of common stock. Year Ended December 31, 2019 2018 Income (loss) from continuing operations $ 33,469 $ (2,773) Less: net income for noncontrolling interest 124 149 Income (loss) from continuing operations attributable to common stockholders 33,345 (2,922) Less: income (loss) from continuing operations attributable to participating securities 1,301 (125) Income (loss) from continuing operations available to common stockholders $ 32,044 $ (2,797) Weighted average shares of common stock (1) 7,783 7,649 Basic and diluted income (loss) per share of common stock from continuing operations attributable to common stockholders $ 4.12 $ (0.37) (1) Reflects the retrospective adjustment related to the reverse stock split completed on August 1, 2019, and excludes unvested shares of common stock awarded under our Share Award Plans, which shares of common stock are considered participating securities because they participate equally in earnings and losses with all of our other shares of common stock. The weighted average number of unvested shares of common stock outstanding was 316 and 341 for the years ended December 31, 2019 and 2018, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective tax rate reconciliation | Effective Tax Rate Reconciliation Year Ended December 31, 2019 2018 U.S. federal statutory rate applied to income (loss) before income taxes and discontinued operations $ (7,940) $ 994 State income taxes, net of federal benefit 635 (2,957) Benefit of tax credits 4,020 3,977 Provision to return adjustments (31) 560 Nondeductible executive compensation (109) (210) Other nondeductible expenses (530) (430) Other, net (384) (360) Total (provision) benefit for income taxes $ (4,339) $ 1,574 |
Schedule of components of the (provision) benefit for income taxes | Components of the (Provision) Benefit For Income Taxes Year Ended December 31, 2019 2018 Current tax benefit: Federal $ 1,019 $ 1,737 State 352 240 Total current tax benefit 1,371 1,977 Deferred tax provision: Federal (6,163) 3,581 State 453 (3,984) Total deferred tax provision (5,710) (403) Total (provision) benefit for income taxes $ (4,339) $ 1,574 |
Schedule of components of deferred tax assets and liabilities | Components of Deferred Tax Assets and Liabilities December 31, 2019 2018 Deferred tax assets: Tax loss carryforwards $ 63,185 $ 76,250 Tax credit carryforwards 35,624 31,377 Leasing arrangements 32,007 55,929 Reserves 18,204 16,186 Asset retirement obligations 1,278 625 Other 704 488 Total deferred tax assets before valuation allowance 151,002 180,855 Valuation allowance (1,209) (1,310) Total deferred tax assets 149,793 179,545 Deferred tax liabilities: Property and equipment (102,051) (97,306) Goodwill and intangible assets (3,708) (3,374) Total deferred tax liabilities (105,759) (100,680) Net deferred tax assets $ 44,034 $ 78,865 |
Equity Investments (Tables)
Equity Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of financial information for investment in equity affiliates | As of December 31, 2019 and 2018, our investment in equity affiliates, which is presented in our consolidated balance sheets in other noncurrent assets, and our proportional share of our investees' net income (loss), which is included in other (income) expense, net in our consolidated statements of operations and comprehensive income (loss), were as follows: PTP Other (1) Total Investment balance: As of December 31, 2019 $ 24,517 $ 5,983 $ 30,500 As of December 31, 2018 21,260 18,805 40,065 Income (loss) from equity investments: Year ended December 31, 2019 $ 5,657 $ (4,750) $ 907 Year ended December 31, 2018 3,652 (5,679) (2,027) (1) Includes our investments in Affiliates Insurance Company, or AIC, and QuikQ LLC, or QuikQ. The following table sets forth summarized financial information of our equity investments and does not represent the amounts we have included in our consolidated statements of operations and comprehensive income (loss) in connection with our equity investments. Year Ended December 31, 2019 2018 Total revenues $ 126,750 $ 125,448 Cost of goods sold (excluding depreciation) 80,579 87,189 Income from operations 9,259 2,742 Net income 7,206 1,363 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventory at December 31, 2019 and 2018, consisted of the following: December 31, 2019 2018 Nonfuel products $ 161,560 $ 163,302 Fuel products 35,051 33,419 Total inventory $ 196,611 $ 196,721 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - General Information and Basis of Presentation (Details) | Aug. 01, 2019$ / shares | Dec. 31, 2019staterestauranttravel_centertruck_service_facilitysegmentstore$ / shares | Dec. 31, 2018$ / shares | Dec. 05, 2018convenience_storerestaurant |
Accounting Policies [Abstract] | ||||
Common stock, par value (in USD per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |
Reverse stock split conversion ratio | 0.20 | |||
Number of reportable segments | segment | 1 | |||
Real Estate Properties [Line Items] | ||||
Number of sites | store | 306 | |||
Travel centers | ||||
Real Estate Properties [Line Items] | ||||
Number of states | state | 44 | |||
Travel centers | Company operated sites | ||||
Real Estate Properties [Line Items] | ||||
Number of sites | 232 | |||
Number of sites owned | 51 | |||
Number of sites leased | 181 | |||
Number of sites operated under joint venture | 2 | |||
Travel centers | Franchisee operated sites | ||||
Real Estate Properties [Line Items] | ||||
Number of sites | 29 | |||
Number of sites owned by franchisees or leased from others | 27 | |||
Travel centers | Franchisee operated and leased sites | ||||
Real Estate Properties [Line Items] | ||||
Number of sites | 2 | |||
Travel centers | TA, TA Express and Petro brands | ||||
Real Estate Properties [Line Items] | ||||
Number of sites | 261 | |||
Truck service facilities | ||||
Real Estate Properties [Line Items] | ||||
Number of sites owned | truck_service_facility | 1 | |||
Number of sites leased | truck_service_facility | 1 | |||
Truck service facilities | TA Truck Service brand | ||||
Real Estate Properties [Line Items] | ||||
Number of sites | truck_service_facility | 2 | |||
Restaurants | ||||
Real Estate Properties [Line Items] | ||||
Number of states | state | 12 | |||
Restaurants | Company operated sites | ||||
Real Estate Properties [Line Items] | ||||
Number of sites | restaurant | 16 | |||
Number of sites owned | restaurant | 6 | |||
Number of sites leased | restaurant | 9 | |||
Number of sites operated under joint venture | restaurant | 1 | |||
Restaurants | Franchisee operated sites | ||||
Real Estate Properties [Line Items] | ||||
Number of sites owned by franchisees or leased from others | restaurant | 27 | |||
Restaurants | QSL brand | ||||
Real Estate Properties [Line Items] | ||||
Number of sites | restaurant | 43 | |||
Restaurants | Disposal group, disposed of by sale | ||||
Real Estate Properties [Line Items] | ||||
Number of sites | restaurant | 1 | |||
Convenience stores | Disposal group, disposed of by sale | ||||
Real Estate Properties [Line Items] | ||||
Number of sites | convenience_store | 225 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) $ in Thousands | Dec. 31, 2019USD ($) |
General business tax credit carryforward | |
Tax Credit Carryforward [Line Items] | |
Federal biodiesel blenders' tax credit | $ 70,229 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings and site improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Buildings and site improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Impairment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)reportingUnits | |
Accounting Policies [Abstract] | |
Number of reporting units | reportingUnits | 2 |
Depreciation and amortization expense | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
Impairment charges to property and equipment | $ 2,369 |
Real estate rent expense | |
Impaired Long-Lived Assets Held and Used [Line Items] | |
Impairment charges to operating lease assets | $ 579 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Stock Based Employee Compensation (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Share award plans | Employees, excluding Directors | |
Stock-based Compensation Arrangement by Stock-based Payment Award [Line Items] | |
Vesting period of stock issued to other than directors | 5 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Asset Retirement Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Asset retirement obligations | $ 5,160 | $ 2,478 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Leasing Transactions (Details) | Dec. 31, 2019lease |
SVC | Principal landlord and largest stockholder | SVC Leases | |
Real Estate Properties [Line Items] | |
Number of leases with SVC | 5 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Percent of diesel fuel volume sold at discounts | 86.40% |
Revenues - Disaggregation of No
Revenues - Disaggregation of Nonfuel Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Total nonfuel revenues | $ 6,117,359 | $ 6,232,215 |
Nonfuel | ||
Total nonfuel revenues | 1,856,147 | 1,820,341 |
Store and retail services | ||
Total nonfuel revenues | 756,854 | 732,220 |
Truck service | ||
Total nonfuel revenues | 674,203 | 671,385 |
Restaurant | ||
Total nonfuel revenues | $ 425,090 | $ 416,736 |
Revenues - Changes in Contract
Revenues - Changes in Contract Liabilities Between Periods (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Deferred Revenue [Roll Forward] | ||
Beginning Balance | $ 18,960 | $ 19,846 |
Increases due to unsatisfied performance obligations arising during the period | 116,210 | 91,600 |
Revenues recognized from satisfying performance obligations during the period | (100,981) | (84,612) |
Other | (11,374) | (7,874) |
Ending Balance | 22,815 | 18,960 |
Customer Loyalty Programs | ||
Movement in Deferred Revenue [Roll Forward] | ||
Beginning Balance | 15,490 | 15,165 |
Increases due to unsatisfied performance obligations arising during the period | 103,228 | 81,517 |
Revenues recognized from satisfying performance obligations during the period | (90,462) | (74,548) |
Other | (10,263) | (6,644) |
Ending Balance | 17,993 | 15,490 |
Other | ||
Movement in Deferred Revenue [Roll Forward] | ||
Beginning Balance | 3,470 | 4,681 |
Increases due to unsatisfied performance obligations arising during the period | 12,982 | 10,083 |
Revenues recognized from satisfying performance obligations during the period | (10,519) | (10,064) |
Other | (1,111) | (1,230) |
Ending Balance | $ 4,822 | $ 3,470 |
Revenues - Contract Liabilities
Revenues - Contract Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred initial and renewal franchisee fee revenue | $ 119 |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred initial and renewal franchisee fee revenue | $ 176 |
Customer Loyalty Programs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing for unsatisfied performance obligations to be satisfied | 12 months |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jan. 31, 2019USD ($)travel_center | Jun. 30, 2020USD ($)parcel_of_land | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)franchiseetravel_centertireRetreadFacility | |
Business Acquisition [Line Items] | ||||
Acquisitions of businesses, net of cash acquired | $ 0 | $ 10,482 | ||
Forecast | ||||
Business Acquisition [Line Items] | ||||
Number of locations acquired, asset acquisition | parcel_of_land | 1 | |||
Purchase price, asset acquisitions | $ 1,358 | |||
Franchisee operated and leased sites | ||||
Business Acquisition [Line Items] | ||||
Number of franchisees | franchisee | 2 | |||
Travel centers | ||||
Business Acquisition [Line Items] | ||||
Purchase price, asset acquisitions | $ 5,202 | |||
Number of locations acquired, business combination | travel_center | 1 | |||
Acquisitions of businesses, net of cash acquired | $ 10,482 | |||
Travel centers | SVC | Principal landlord and largest stockholder | ||||
Business Acquisition [Line Items] | ||||
Number of locations acquired, asset acquisition | travel_center | 20 | |||
Purchase price, asset acquisitions | $ 309,637 | |||
Transaction related costs | 1,437 | |||
Net recognized aggregate cost basis of acquired assets | $ 284,902 | |||
Travel centers | Franchisee operated and leased sites | ||||
Business Acquisition [Line Items] | ||||
Number of franchisees | franchisee | 1 | |||
Tire retread facility | ||||
Business Acquisition [Line Items] | ||||
Number of locations acquired, asset acquisition | tireRetreadFacility | 1 | |||
Purchase price, asset acquisitions | $ 2,805 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Disposal group, disposed of by sale - USD ($) $ in Thousands | Dec. 05, 2018 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Aggregate sales price | $ 330,609 | |
Net proceeds from sale | 319,853 | |
Transaction related costs | 9,650 | |
Cash sold | $ 1,106 | |
Loss on disposal | $ 79,623 |
Discontinued Operations - Resul
Discontinued Operations - Results of Operations for Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations | $ 0 | $ (117,631) |
Disposal group, disposed of by sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | 742,160 | |
Cost of goods sold (excluding depreciation) | 610,524 | |
Site level operating expense | 103,037 | |
Selling, general and administrative expense | 9,443 | |
Real estate rent expense | 2,206 | |
Depreciation and amortization expense | 20,418 | |
Impairment of goodwill | 69,340 | |
Loss from discontinued operations before income taxes | (72,808) | |
Benefit for income taxes | 14,789 | |
Loss from discontinued operations, net of taxes | (58,019) | |
Loss on disposal | (79,623) | |
Benefit for income taxes | 20,011 | |
Loss from discontinued operations | $ (117,631) |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 1,453,693 | $ 1,143,404 |
Less: accumulated depreciation and amortization | 585,190 | 514,867 |
Property and equipment, net | 868,503 | 628,537 |
Depreciation and amortization expense | ||
Property, Plant and Equipment [Abstract] | ||
Impairment charges to property and equipment | 2,369 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | 97,232 | 80,938 |
Principal landlord and largest stockholder | SVC | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 101,316 | 142,365 |
Less: accumulated depreciation and amortization | 81,915 | 96,266 |
Property and equipment, net | 19,401 | 46,099 |
Principal landlord and largest stockholder | SVC | SVC Leases | ||
Property, Plant and Equipment [Abstract] | ||
Property and equipment that may be sold to SVC for an increase in annual minimum rent | 37,425 | |
Machinery, equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 533,380 | 459,892 |
Machinery, equipment and furniture | Principal landlord and largest stockholder | SVC | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 0 | 3,282 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 316,751 | 177,322 |
Land and improvements | Principal landlord and largest stockholder | SVC | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 0 | 14,945 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 307,433 | 197,866 |
Buildings and improvements | Principal landlord and largest stockholder | SVC | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 0 | 9,943 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 271,451 | 242,469 |
Leasehold improvements | Principal landlord and largest stockholder | SVC | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 101,316 | 114,195 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 24,678 | $ 65,855 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Cost | $ 27,152 | $ 28,312 |
Total amortizable intangible assets, Accumulated Amortization | (18,762) | (17,742) |
Total amortizable intangible assets, Net | 8,390 | 10,570 |
Intangible assets, Cost | 39,469 | 40,629 |
Intangible assets, Accumulated Amortization | (18,762) | (17,742) |
Intangible assets, Net | 20,707 | 22,887 |
Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Carrying value of trademarks (indefinite lives) | 12,317 | 12,317 |
Agreements with franchisees | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Cost | 21,145 | 21,645 |
Total amortizable intangible assets, Accumulated Amortization | (13,350) | (12,308) |
Total amortizable intangible assets, Net | 7,795 | 9,337 |
Intangible assets, Accumulated Amortization | (13,350) | (12,308) |
Leasehold interests | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Cost | 2,094 | 2,754 |
Total amortizable intangible assets, Accumulated Amortization | (2,094) | (2,183) |
Total amortizable intangible assets, Net | 0 | 571 |
Intangible assets, Accumulated Amortization | (2,094) | (2,183) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets, Cost | 3,913 | 3,913 |
Total amortizable intangible assets, Accumulated Amortization | (3,318) | (3,251) |
Total amortizable intangible assets, Net | 595 | 662 |
Intangible assets, Accumulated Amortization | $ (3,318) | $ (3,251) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Total amortization expense for amortizable intangible assets | $ 1,609 | $ 2,452 |
Weighted average period of amortizable intangible assets | 9 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Total | |
2020 | $ 1,152 |
2021 | 1,068 |
2022 | 961 |
2023 | 863 |
2024 | $ 848 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Goodwill by Reporting Unit (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill [Line Items] | ||
Total goodwill | $ 25,259 | $ 25,259 |
Travel centers business | ||
Goodwill [Line Items] | ||
Total goodwill | 22,213 | 22,213 |
QSL business | ||
Goodwill [Line Items] | ||
Total goodwill | $ 3,046 | $ 3,046 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Taxes payable, other than income taxes | $ 52,320 | $ 42,985 |
Accrued wages and benefits | 21,416 | 19,830 |
Customer loyalty program accruals | 17,993 | 15,490 |
Self insurance program accruals, current portion | 13,509 | 14,623 |
Accrued capital expenditures | 4,721 | 7,742 |
Other | 28,496 | 24,998 |
Total other current liabilities | $ 138,455 | $ 125,668 |
Long Term Debt - Schedule of Lo
Long Term Debt - Schedule of Long Term Debt, Net (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total long term debt, net | $ 329,321,000 | $ 320,528,000 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.00% | |
Revolving Credit Facility | $ 7,900,000 | 0 |
Other | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.06% | |
Other long term debt | $ 982,000 | 1,086,000 |
2028 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.25% | |
Senior notes | $ 110,000,000 | 110,000,000 |
2029 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.00% | |
Senior notes | $ 120,000,000 | 120,000,000 |
2030 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.00% | |
Senior notes | $ 100,000,000 | $ 100,000,000 |
Long Term Debt - Senior Notes (
Long Term Debt - Senior Notes (Details) - Senior Notes $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
2028 Senior Notes | |
Debt Instrument [Line Items] | |
Redemption price of debt instrument (as a percent) | 100.00% |
Fair value of debt instrument | $ 112,332 |
2029 Senior Notes | |
Debt Instrument [Line Items] | |
Redemption price of debt instrument (as a percent) | 100.00% |
Fair value of debt instrument | $ 121,200 |
2030 Senior Notes | |
Debt Instrument [Line Items] | |
Redemption price of debt instrument (as a percent) | 100.00% |
Fair value of debt instrument | $ 102,000 |
Long Term Debt - Revolving Cred
Long Term Debt - Revolving Credit Facility (Details) - Credit Facility | Jul. 19, 2019USD ($)Rate | Jul. 18, 2019USD ($) | Dec. 31, 2019USD ($)Rate | Dec. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | ||||
Sublimit for issuance of letters of credit | $ 125,000,000 | $ 170,000,000 | ||
Maximum borrowing capacity | $ 200,000,000 | |||
Increase in maximum borrowing capacity subject to available collateral and lender participation | $ 300,000,000 | |||
Fee on unused commitments (as a percent) | Rate | 0.25% | |||
Amount available for borrowings and letters of credit | $ 111,017,000 | |||
Borrowings outstanding | 7,900,000 | $ 0 | ||
Accrued interest and outstanding fees | 31,000 | |||
Outstanding amount of letters of credit | 18,141,000 | |||
Amount under Credit Facility available for use | $ 84,945,000 | |||
LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Reduction on applicable margins on variable rates (in basis points) | Rate | 25 | |||
Fee on borrowings and letters of credit (as a percent) | Rate | 1.25% | |||
Commercial paper | ||||
Line of Credit Facility [Line Items] | ||||
Reduction on applicable margins on variable rates (in basis points) | Rate | 12.5 | |||
Fee on borrowings and letters of credit (as a percent) | Rate | 0.625% | |||
Base rate | ||||
Line of Credit Facility [Line Items] | ||||
Fee on borrowings and letters of credit (as a percent) | Rate | 0.25% |
Long Term Debt - IHOP Secured A
Long Term Debt - IHOP Secured Advance Note (Details) | Dec. 31, 2019USD ($)store | Oct. 28, 2019USD ($)restaurantyr | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||
Number of sites | store | 306 | ||
Term to rebrand and convert restaurants (in years) | yr | 5 | ||
Borrowings outstanding | $ 329,321,000 | $ 320,528,000 | |
IHOP Secured Advance Note | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 10,000,000 | ||
Borrowings outstanding | $ 0 | ||
Full service restaurants | IHOP brand | |||
Debt Instrument [Line Items] | |||
Number of sites | restaurant | 94 |
Long Term Debt - West Greenwich
Long Term Debt - West Greenwich Term Loan (Details) | Feb. 07, 2020USD ($)yrtravel_center | Dec. 31, 2019travel_center |
Travel centers | Company operated sites | ||
Debt Instrument [Line Items] | ||
Number of sites owned | 51 | |
West Greenwich Term Loan | Subsequent event | ||
Debt Instrument [Line Items] | ||
Loan term (in years) | 10 years | |
Face amount | $ | $ 16,600,000 | |
Interest rate | 3.85% | |
Period in which Federal Home Loan Bank rate is fixed (in years) | 5 years | |
Term of Federal Home Loan Bank rate | yr | 5 | |
Amount added to fixed Federal Home Loan Bank rate (in basis points) | 198 | |
Period to repay loan in full prior to termination (in days) | 60 days | |
Period for nominal penalty (in years) | 3 years | |
West Greenwich Term Loan | Subsequent event | Travel centers | Company operated sites | ||
Debt Instrument [Line Items] | ||
Number of sites owned | 1 |
Long Term Debt - Deferred Finan
Long Term Debt - Deferred Financing Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Increased deferred financing costs related to Credit Facility Amendment | $ 688 | |
Write off of deferred financing costs related to Credit Facility Amendment | 47 | |
Future amortization of deferred financing costs in 2020 | 1,149 | |
Future amortization of deferred financing costs in 2021 | 1,146 | |
Future amortization of deferred financing costs in 2022 | 1,146 | |
Future amortization of deferred financing costs in 2023 | 1,146 | |
Future amortization of deferred financing costs in 2024 | 1,075 | |
Interest expense from amortization of deferred financing costs | 1,183 | $ 1,221 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Accumulated amortization | 5,420 | 4,422 |
Senior Notes | Long term debt, net | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | (9,561) | (10,558) |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Accumulated amortization | 1,136 | 904 |
Credit Facility | Other noncurrent assets | ||
Debt Instrument [Line Items] | ||
Unamortized deferred financing costs | $ (671) | $ (216) |
Leasing Transactions - Narrativ
Leasing Transactions - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 1,817,998 | $ 0 | |
Operating lease liabilities | $ 1,984,258 | ||
ASC 842 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 1,785,866 | ||
Operating lease liabilities | 1,996,957 | ||
Adjustment to beginning accumulated deficit, net of taxes | 86,243 | ||
Adjustment for previously recognized deferred gain on sale leaseback transactions | 113,712 | ||
Adjustment for previously recognized liability for certain failed sale leaseback transactions | 1,591 | ||
Adjustment for related tax effect | $ 29,060 |
Leasing Transactions - As a Les
Leasing Transactions - As a Lessee Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2019USD ($) | Dec. 31, 2019USD ($)lease | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||
Operating lease weighted average remaining lease term (in years) | 13 years | ||
Operating lease weighted average discount rate | 9.10% | ||
Amount paid included in measurement of operating lease liabilities | $ 279,168 | ||
Real estate rent expense | |||
Related Party Transaction [Line Items] | |||
Impairment charges to operating lease assets | $ 579 | ||
SVC Leases | Principal landlord and largest stockholder | SVC | |||
Related Party Transaction [Line Items] | |||
Number of leases with SVC | lease | 5 | ||
Decrease (increase) in annual minimum rent | $ (43,148) | $ 4,789 |
Leasing Transactions - Schedule
Leasing Transactions - Schedule of Lease Costs as a Lessee (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Real estate rent expense | $ 257,762 | $ 283,476 |
Net lease costs | 261,539 | |
Site level operating expense and selling, general and administrative expense | ||
Lessee, Lease, Description [Line Items] | ||
Short-term lease costs | 2,869 | |
SVC Leases | SVC | Principal landlord and largest stockholder | ||
Lessee, Lease, Description [Line Items] | ||
Variable lease costs | 4,075 | 3,591 |
Real estate rent expense | 245,531 | 273,012 |
Sublease income | (2,180) | $ (2,294) |
SVC Leases | Real estate rent expense | SVC | Principal landlord and largest stockholder | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 240,328 | |
Variable lease costs | 5,203 | |
SVC Leases | Nonfuel revenues | SVC | Principal landlord and largest stockholder | ||
Lessee, Lease, Description [Line Items] | ||
Sublease income | (2,180) | |
Other | Real estate rent expense | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 11,082 | |
Variable lease costs | 1,149 | |
Equipment and other | Site level operating expense and selling, general and administrative expense | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 3,088 |
Leasing Transactions - Schedu_2
Leasing Transactions - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
2020 | $ 277,884 |
2021 | 276,354 |
2022 | 273,375 |
2023 | 258,451 |
2024 | 252,963 |
Thereafter | 2,042,228 |
Total operating lease payments | 3,381,255 |
Less: present value discount | (1,396,997) |
Present value of operating lease liabilities | 1,984,258 |
SVC Leases | |
Lessee, Lease, Description [Line Items] | |
2020 | 271,336 |
2021 | 270,799 |
2022 | 268,936 |
2023 | 255,344 |
2024 | 251,150 |
Thereafter | 2,034,504 |
Total operating lease payments | 3,352,069 |
Less: present value discount | (1,391,435) |
Present value of operating lease liabilities | 1,960,634 |
Other | |
Lessee, Lease, Description [Line Items] | |
2020 | 6,548 |
2021 | 5,555 |
2022 | 4,439 |
2023 | 3,107 |
2024 | 1,813 |
Thereafter | 7,724 |
Total operating lease payments | 29,186 |
Less: present value discount | (5,562) |
Present value of operating lease liabilities | $ 23,624 |
Leasing Transactions - Schedu_3
Leasing Transactions - Schedule of Operating Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | $ 1,817,998 | $ 0 |
Current operating lease liabilities | 104,070 | 0 |
Noncurrent operating lease liabilities | 1,880,188 | $ 0 |
SVC Leases | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | 1,796,406 | |
Current operating lease liabilities | 98,574 | |
Noncurrent operating lease liabilities | 1,862,060 | |
Other | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | 21,592 | |
Current operating lease liabilities | 5,496 | |
Noncurrent operating lease liabilities | $ 18,128 |
Leasing Transactions - Schedu_4
Leasing Transactions - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 302,855 |
2020 | 301,220 |
2021 | 299,393 |
2022 | 296,551 |
2023 | 295,534 |
Thereafter | 1,980,078 |
Total | $ 3,475,631 |
Leasing Transactions - Leasing
Leasing Transactions - Leasing Agreements with SVC Narrative (Details) $ in Thousands | Oct. 14, 2019USD ($) | Apr. 01, 2019USD ($)installment | Jan. 31, 2019USD ($)travel_center | Jun. 30, 2020USD ($)parcel_of_land | Dec. 31, 2020 | Dec. 31, 2019USD ($)propertylease | Dec. 31, 2018USD ($)installment |
Related Party Transaction [Line Items] | |||||||
Total real estate rent expense | $ 257,762 | $ 283,476 | |||||
Aggregate selling price of improvements sold | $ 0 | 55,829 | |||||
Forecast | |||||||
Related Party Transaction [Line Items] | |||||||
Number of locations acquired | parcel_of_land | 1 | ||||||
Acquisition of travel centers from SVC | $ 1,358 | ||||||
Travel centers | |||||||
Related Party Transaction [Line Items] | |||||||
Acquisition of travel centers from SVC | 5,202 | ||||||
SVC | Principal landlord and largest stockholder | |||||||
Related Party Transaction [Line Items] | |||||||
Deferred rent obligation | 150,000 | ||||||
SVC | Principal landlord and largest stockholder | Travel centers | |||||||
Related Party Transaction [Line Items] | |||||||
Number of locations acquired | travel_center | 20 | ||||||
Acquisition of travel centers from SVC | $ 309,637 | ||||||
Transaction related costs | 1,437 | ||||||
SVC | Principal landlord and largest stockholder | SVC Leases | |||||||
Related Party Transaction [Line Items] | |||||||
Number of sites leased | property | 179 | ||||||
Number of leases with SVC | lease | 5 | ||||||
Decrease (increase) in annual minimum rent | $ (43,148) | $ 4,789 | |||||
Extension of lease term (in years) | 3 years | ||||||
Number of payments for deferred rent obligation | installment | 16 | 5 | |||||
Payment due for deferred rent obligation | $ 4,404 | ||||||
Deferred rent obligation | $ 70,458 | $ 57,247 | $ 150,000 | ||||
Deferred rent obligation installment payments | 13,211 | ||||||
Increase in operating lease assets and liabilities | $ 33,816 | $ 23,673 | |||||
Increase in asset retirement obligation due to Transaction Agreements | 2,420 | ||||||
Total real estate rent expense | $ 245,531 | 273,012 | |||||
Rate of percentage rent incurred | 3.00% | ||||||
Percentage rent incurred | $ 4,075 | 3,591 | |||||
Lease payment multiple (as a percent) for basis in increase in rent | 8.50% | ||||||
Basis spread on U.S. Treasury interest rate (as a percent) | 3.50% | ||||||
Aggregate selling price of improvements sold | $ 0 | 56,346 | |||||
Property and equipment that may be sold to SVC for an increase in annual minimum rent | 37,425 | ||||||
Sublease income | $ 2,180 | $ 2,294 | |||||
SVC | Principal landlord and largest stockholder | SVC Leases | Forecast | |||||||
Related Party Transaction [Line Items] | |||||||
Rate of percentage rent incurred | 0.005 | ||||||
SVC | Principal landlord and largest stockholder | SVC Leases | Travel centers | |||||||
Related Party Transaction [Line Items] | |||||||
Number of locations acquired | travel_center | 20 | ||||||
Acquisition of travel centers from SVC | $ 309,637 | ||||||
Transaction related costs | $ 1,437 | ||||||
Number of properties subject to lease | property | 179 | ||||||
SVC | Principal landlord and largest stockholder | SVC Leases | Travel centers | Base Year 2012 | |||||||
Related Party Transaction [Line Items] | |||||||
Number of sites leased | property | 35 | ||||||
SVC | Principal landlord and largest stockholder | SVC Leases | Travel centers | Base Year 2015 | |||||||
Related Party Transaction [Line Items] | |||||||
Number of sites leased | property | 138 | ||||||
SVC | Principal landlord and largest stockholder | SVC Leases | Travel centers | Base Year 2017 | |||||||
Related Party Transaction [Line Items] | |||||||
Number of sites leased | property | 2 | ||||||
SVC | Principal landlord and largest stockholder | SVC Leases | Travel centers | Base Year 2019 | |||||||
Related Party Transaction [Line Items] | |||||||
Number of sites leased | property | 3 | ||||||
SVC | Principal landlord and largest stockholder | SVC Leases | Travel centers | Base Year 2020 | |||||||
Related Party Transaction [Line Items] | |||||||
Number of sites leased | property | 1 | ||||||
SVC | Principal landlord and largest stockholder | TA Leases | |||||||
Related Party Transaction [Line Items] | |||||||
Number of leases with SVC | lease | 4 | ||||||
SVC | Principal landlord and largest stockholder | Petro Lease | |||||||
Related Party Transaction [Line Items] | |||||||
Number of leases with SVC | lease | 1 | ||||||
Deferred rent obligation | $ 0 | ||||||
SVC | Principal landlord and largest stockholder | Petro Lease | Travel centers | |||||||
Related Party Transaction [Line Items] | |||||||
Number of properties subject to lease | property | 35 |
Leasing Transactions - Schedu_5
Leasing Transactions - Schedule of Annual Minimum Rent and Deferred Rent Under the SVC Leases (Details) - SVC - Principal landlord and largest stockholder $ in Thousands | Dec. 31, 2019USD ($)propertyrenewal_option | Apr. 01, 2019USD ($)installment | Dec. 31, 2018USD ($)installment |
Lessee, Lease, Description [Line Items] | |||
Deferred rent | $ 150,000 | ||
TA Lease 1 | |||
Lessee, Lease, Description [Line Items] | |||
Annual minimum rent | $ 49,707 | ||
Deferred rent | 15,148 | ||
TA Lease 2 | |||
Lessee, Lease, Description [Line Items] | |||
Annual minimum rent | 44,077 | ||
Deferred rent | 14,068 | ||
TA Lease 3 | |||
Lessee, Lease, Description [Line Items] | |||
Annual minimum rent | 42,409 | ||
Deferred rent | 13,870 | ||
TA Lease 4 | |||
Lessee, Lease, Description [Line Items] | |||
Annual minimum rent | 46,067 | ||
Deferred rent | 14,161 | ||
Petro Lease | |||
Lessee, Lease, Description [Line Items] | |||
Annual minimum rent | 61,654 | ||
Deferred rent | 0 | ||
SVC Leases | |||
Lessee, Lease, Description [Line Items] | |||
Annual minimum rent | 243,914 | ||
Deferred rent | $ 57,247 | $ 70,458 | $ 150,000 |
Number of renewal options | renewal_option | 2 | ||
Renewal term (in years) | 15 years | ||
Number of payments for deferred rent obligation | installment | 16 | 5 | |
Payment due for deferred rent obligation | $ 4,404 | ||
Interest rate percentage on deferred rent amounts | 1.00% | ||
Travel centers | TA Lease 1 | |||
Lessee, Lease, Description [Line Items] | |||
Number of properties subject to lease | property | 36 | ||
Travel centers | TA Lease 2 | |||
Lessee, Lease, Description [Line Items] | |||
Number of properties subject to lease | property | 36 | ||
Travel centers | TA Lease 3 | |||
Lessee, Lease, Description [Line Items] | |||
Number of properties subject to lease | property | 35 | ||
Travel centers | TA Lease 4 | |||
Lessee, Lease, Description [Line Items] | |||
Number of properties subject to lease | property | 37 | ||
Travel centers | Petro Lease | |||
Lessee, Lease, Description [Line Items] | |||
Number of properties subject to lease | property | 35 | ||
Travel centers | SVC Leases | |||
Lessee, Lease, Description [Line Items] | |||
Number of properties subject to lease | property | 179 |
Leasing Transactions - Summary
Leasing Transactions - Summary of Various Amounts Included in the Consolidated Balance Sheet (Details) $ in Thousands | Dec. 31, 2019USD ($) | Apr. 01, 2019USD ($)installment | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($)installmenttravel_center |
Current SVC Leases Liabilities: | ||||
Total current SVC Leases liabilities | $ 0 | $ 42,109 | ||
Noncurrent SVC Leases Liabilities: | ||||
Total noncurrent SVC Leases liabilities | 0 | 353,756 | ||
ASC 842 | ||||
Various Amounts Related to SVC Leases Included in Consolidated Balance Sheets (Footnotes): | ||||
Deferred gain from sale of assets | $ 113,712 | |||
SVC | Principal landlord and largest stockholder | ||||
Current SVC Leases Liabilities: | ||||
Accrued rent | 24,721 | |||
Sale leaseback financing obligations | 1,032 | |||
Straight line rent accrual | 2,458 | |||
Deferred gain | 10,128 | |||
Deferred tenant improvements allowance | 3,770 | |||
Total current SVC Leases liabilities | 42,109 | |||
Noncurrent SVC Leases Liabilities: | ||||
Deferred rent obligation | 150,000 | |||
Sale leaseback financing obligations | 22,365 | |||
Straight line rent accrual | 46,431 | |||
Deferred gain | 100,913 | |||
Deferred tenant improvements allowance | 34,047 | |||
Total noncurrent SVC Leases liabilities | 353,756 | |||
Various Amounts Related to SVC Leases Included in Consolidated Balance Sheets (Footnotes): | ||||
Estimated cost of removal of underground storage tanks | 22,216 | |||
Deferred rent obligation | 150,000 | |||
SVC | Principal landlord and largest stockholder | SVC Leases | ||||
Noncurrent SVC Leases Liabilities: | ||||
Deferred rent obligation | 57,247 | $ 70,458 | 150,000 | |
Various Amounts Related to SVC Leases Included in Consolidated Balance Sheets (Footnotes): | ||||
Deferred gain from sale of assets | 145,462 | |||
Deferred rent obligation | $ 57,247 | $ 70,458 | $ 150,000 | |
Number of payments for deferred rent obligation | installment | 16 | 5 | ||
SVC | Principal landlord and largest stockholder | SVC Leases | ASC 842 | ||||
Various Amounts Related to SVC Leases Included in Consolidated Balance Sheets (Footnotes): | ||||
Unamortized deferred gain, net of taxes recognized due to ASC 842 | $ 85,053 | |||
SVC | Principal landlord and largest stockholder | Travel centers | TA Leases | ||||
Various Amounts Related to SVC Leases Included in Consolidated Balance Sheets (Footnotes): | ||||
Number of sites leased | travel_center | 2 |
Leasing Transactions - As a L_2
Leasing Transactions - As a Lessor Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)travel_center | Dec. 31, 2018USD ($)travel_center | |
Operating Leased Assets [Line Items] | ||
Rent revenue | $ 2,293 | $ 3,052 |
Future minimum lease payments due in 2020 | 2,287 | |
Future minimum lease payments due in 2021 | 2,287 | |
Future minimum lease payments due in 2022 | $ 1,144 | |
Travel centers | Franchise units | ||
Operating Leased Assets [Line Items] | ||
Number of sites leased | travel_center | 2 | 4 |
Number of sites leased, expired | travel_center | 2 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | Aug. 01, 2019shares | Dec. 31, 2019shares | Jul. 31, 2019shares | Dec. 31, 2018shares |
Stockholders' Equity Note [Abstract] | ||||
Common stock, shares authorized | 16,000,000 | 16,000,000 | 8,674,000 | 8,674,000 |
Reverse stock split conversion ratio | 0.20 |
Stockholders' Equity - Share Aw
Stockholders' Equity - Share Award Plans (Details) - Share award plans - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock-based Compensation Arrangement by Stock-based Payment Award [Line Items] | ||
Number of shares of common stock authorized under the 2016 Plan (in shares) | 860 | |
Number of additional awards under the 2007 Plan (in shares) | 0 | |
Number of shares of common stock awarded under the 2016 Plan (in shares) | 270 | 175 |
Aggregate market value of shares of common stock awarded | $ 2,647 | $ 3,867 |
Total stock based compensation expense recognized | 3,441 | 6,371 |
Vesting date fair value of shares of common stock vested | $ 1,754 | $ 5,147 |
Weighted average grant date fair value of shares of common stock awarded (in USD per share) | $ 9.78 | $ 22.07 |
Shares of common stock that remained available for issuance under the 2016 Plan (in shares) | 88 | |
Total stock based compensation related to unvested shares of common stock | $ 5,293 | |
Weighted average remaining service period over which stock based compensation related to unvested shares of common stock will be expensed | 3 years | |
Employees, excluding Directors | ||
Stock-based Compensation Arrangement by Stock-based Payment Award [Line Items] | ||
Vesting period of shares of common stock | 5 years |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Unvested Shares of Common Stock Under Share Award Plans (Details) - Share award plans - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares of Common Stock | ||
Unvested shares of common stock balance at the beginning of the period (in shares) | 316 | |
Granted (in shares) | 270 | 175 |
Vested (in shares) | (168) | |
Forfeited/canceled (in shares) | (6) | |
Unvested shares of common stock balance at the end of the period (in shares) | 412 | 316 |
Weighted Average Grant Date Fair Value Per Share of Common Stock | ||
Unvested shares of common stock balance at the beginning of the period (in USD per share) | $ 27.44 | |
Granted (in USD per share) | 9.78 | $ 22.07 |
Vested (in USD per share) | 22.15 | |
Forfeited/canceled (in USD per share) | 26.57 | |
Unvested shares of common stock balance at the end of the period (in USD per share) | $ 18.03 | $ 27.44 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Aug. 01, 2019 | |
Stockholders' Equity Note [Abstract] | |||
Number of shares of common stock acquired (in shares) | 37 | 89 | |
Aggregate value of shares of common stock acquired | $ 346 | $ 1,744 | |
Number of treasury stock retired (in shares) | 37 | 89 | |
Treasury stock, par value (in USD per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Carrying value of treasury stock retired | $ 346 | $ 1,744 |
Stockholders' Equity - Income (
Stockholders' Equity - Income (Loss) Per Share of Common Stock from Continuing Operations Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | ||
Dilutive stock securities outstanding | $ 0 | $ 0 |
Income (loss) from continuing operations | 33,469 | (2,773) |
Less: net income for noncontrolling interest | 124 | 149 |
Income (loss) from continuing operations attributable to common stockholders | 33,345 | (2,922) |
Less: income (loss) from continuing operations attributable to participating securities | 1,301 | (125) |
Income (loss) from continuing operations available to common stockholders | $ 32,044 | $ (2,797) |
Weighted average shares of common stock (in shares) | 7,783 | 7,649 |
Basic and diluted income (loss) per share of common stock from continuing operations attributable to common stockholders (in USD per share) | $ 4.12 | $ (0.37) |
Weighted average number of unvested shares of common stock outstanding (in shares) | 316 | 341 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
(Provision) benefit for income taxes | $ (4,339) | $ 1,574 |
Valuation allowance | 1,209 | $ 1,310 |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 264,143 | |
Federal tax credit carryforwards | 35,624 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 183,561 | |
Net operating loss to expire in 2030 | Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 3,600 | |
Net operating loss to expire in 2020 | State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 81 | |
Net operating loss to expire in 2021 | State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 50 | |
Tax credit to expire between 2021 and 2024 | Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Federal tax credit carryforwards | $ 434 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory rate applied to income (loss) before income taxes and discontinued operations | $ (7,940) | $ 994 |
State income taxes, net of federal benefit | 635 | (2,957) |
Benefit of tax credits | 4,020 | 3,977 |
Provision to return adjustments | (31) | 560 |
Nondeductible executive compensation | (109) | (210) |
Other nondeductible expenses | (530) | (430) |
Other, net | (384) | (360) |
Total (provision) benefit for income taxes | $ (4,339) | $ 1,574 |
Income Taxes - Components of th
Income Taxes - Components of the (Provision) Benefit for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax benefit: | ||
Federal | $ 1,019 | $ 1,737 |
State | 352 | 240 |
Total current tax benefit | 1,371 | 1,977 |
Deferred tax provision: | ||
Federal | (6,163) | 3,581 |
State | 453 | (3,984) |
Total deferred tax provision | (5,710) | (403) |
Total (provision) benefit for income taxes | $ (4,339) | $ 1,574 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Tax loss carryforwards | $ 63,185 | $ 76,250 |
Tax credit carryforwards | 35,624 | 31,377 |
Leasing arrangements | 32,007 | 55,929 |
Reserves | 18,204 | 16,186 |
Asset retirement obligations | 1,278 | 625 |
Other | 704 | 488 |
Total deferred tax assets before valuation allowance | 151,002 | 180,855 |
Valuation allowance | (1,209) | (1,310) |
Total deferred tax assets | 149,793 | 179,545 |
Deferred tax liabilities: | ||
Property and equipment | (102,051) | (97,306) |
Goodwill and intangible assets | (3,708) | (3,374) |
Total deferred tax liabilities | (105,759) | (100,680) |
Net deferred tax assets | $ 44,034 | $ 78,865 |
Equity Investments - Schedule o
Equity Investments - Schedule of Equity Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other (income) expense, net | ||
Schedule of Equity Method Investments [Line Items] | ||
Income (loss) from equity investees | $ 907 | $ (2,027) |
Other (income) expense, net | PTP | ||
Schedule of Equity Method Investments [Line Items] | ||
Income (loss) from equity investees | 5,657 | 3,652 |
Other (income) expense, net | Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Income (loss) from equity investees | (4,750) | (5,679) |
Other noncurrent assets | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment balance | 30,500 | 40,065 |
Other noncurrent assets | PTP | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment balance | 24,517 | 21,260 |
Other noncurrent assets | Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment balance | $ 5,983 | $ 18,805 |
Equity Investments - Narrative
Equity Investments - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)companyconvenience_storetravel_centerrestaurant | Dec. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Capital distribution from AIC | $ 5,756 | $ 0 |
Affiliated entity | RMR | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of companies managed by RMR | company | 5 | |
PTP | Equity method investee | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest (as a percent) | 40.00% | |
Management fee income | $ 849 | $ 1,562 |
PTP | Equity method investee | Travel centers | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of sites operated under joint venture | travel_center | 2 | |
PTP | Equity method investee | Convenience stores | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of sites operated under joint venture | convenience_store | 3 | |
PTP | Equity method investee | Restaurants | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of sites operated under joint venture | restaurant | 1 | |
QuikQ | Equity method investee | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest (as a percent) | 50.00% | |
AIC | Equity method investee | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest (as a percent) | 14.30% | |
Capital distribution from AIC | $ 9,000 |
Equity Investments - Summarized
Equity Investments - Summarized Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Total revenues | $ 126,750 | $ 125,448 |
Cost of goods sold (excluding depreciation) | 80,579 | 87,189 |
Income from operations | 9,259 | 2,742 |
Net income | $ 7,206 | $ 1,363 |
Business Management Agreement_2
Business Management Agreement with RMR - Narrative (Details) - RMR - Affiliated entity - Business management agreement - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Annual business management fee percentage | 0.60% | |
Business management agreement, automatic renewal term (in years) | 1 year | |
Period before which written notice is required to be given (in days) | 120 days | |
Period for written notice to withdraw, subject to approval by majority vote of Independent Directors (in days) | 60 days | |
Multiple in calculating termination fee | 2.875 | |
Period over which base management fee is determined as basis to calculate termination fee (in months) | 24 months | |
Period of transition services (in days) | 120 days | |
Selling, general and administrative expense | ||
Related Party Transaction [Line Items] | ||
Business management fee | $ 13,409 | $ 14,570 |
Expense for internal audit costs | $ 284 | $ 236 |
Related Party Transactions - Re
Related Party Transactions - Relationship with SVC (Details) | 12 Months Ended | ||
Dec. 31, 2019directorpropertyshares | Jun. 28, 2019shares | Dec. 31, 2018shares | |
Related Party Transaction [Line Items] | |||
Number of shares of common stock outstanding owned (in shares) | 8,307,000 | 8,080,000 | |
SVC | Principal landlord and largest stockholder | |||
Related Party Transaction [Line Items] | |||
Number of shares of common stock outstanding owned (in shares) | 684,000 | 684,000 | |
Percentage of outstanding shares of common stock owned | 8.20% | ||
Number of TA Managing Directors who are also managing trustees of SVC | director | 1 | ||
SVC | Principal landlord and largest stockholder | SVC Leases | |||
Related Party Transaction [Line Items] | |||
Number of sites leased | property | 179 | ||
SVC | Principal landlord and largest stockholder | Maximum | |||
Related Party Transaction [Line Items] | |||
Percentage of voting shares that can be acquired | 9.80% |
Related Party Transactions - Ou
Related Party Transactions - Our Manager, RMR (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Number of shares of common stock outstanding owned (in shares) | 8,307 | 8,080 |
RMR | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Number of shares of common stock outstanding owned (in shares) | 299 | |
Percentage of outstanding shares of common stock owned | 3.60% | |
RMR | Affiliated entity | Restricted stock | ||
Related Party Transaction [Line Items] | ||
Number of shares of common stock awarded under the 2016 Plan (in shares) | 20 | 10 |
Aggregate market value of shares of common stock awarded | $ 184 | $ 228 |
Related Party Transactions - _2
Related Party Transactions - Relationship with AIC (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)company | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | |
Other noncurrent assets | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value of investment | $ 30,500 | $ 40,065 | ||
AIC | Equity method investee | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest (as a percent) | 14.30% | |||
Service fee percentage | 3.00% | |||
AIC | Equity method investee | Other comprehensive income (loss) attributable to common stockholders | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Unrealized gains and losses on securities held for sale | $ 91 | (69) | ||
AIC | Equity method investee | Other (income) expense, net | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income from equity investees | 575 | 516 | ||
Income from previously unrealized gains and losses on securities held for sale | 664 | |||
AIC | Equity method investee | Other noncurrent assets | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Carrying value of investment | $ 298 | $ 8,632 | ||
AIC | Equity method investee | Property insurance annual premium | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Annual premiums paid for property insurance | $ 2,502 | $ 1,721 | ||
RMR | Affiliated entity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of companies managed by RMR | company | 5 |
Related Party Transactions - Di
Related Party Transactions - Directors' and Officers' Liability Insurance (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
RMR | Affiliated entity | Directors and officers liability insurance | ||
Related Party Transaction [Line Items] | ||
Aggregate premiums paid | $ 122 | $ 157 |
Related Party Transactions - Ex
Related Party Transactions - Executive Officer Retirements (Details) $ in Thousands | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($)tradingDays | Dec. 31, 2018USD ($) |
Related Party Transaction [Line Items] | ||||
Period to sell shares of common stock (in trading days) | tradingDays | 10 | |||
Managing Director and CEO | Current annual salary paid | Forecast | ||||
Related Party Transaction [Line Items] | ||||
Managing Director and CEO compensation per retirement agreement | $ 300 | |||
Managing Director and CEO | Cash bonus paid relating to 2019 | ||||
Related Party Transaction [Line Items] | ||||
Managing Director and CEO compensation per retirement agreement | $ 1,000 | |||
Managing Director and CEO | Additional cash payment | Forecast | ||||
Related Party Transaction [Line Items] | ||||
Managing Director and CEO compensation per retirement agreement | $ 1,000 | |||
Managing Director and CEO | Cash payment and acceleration of stock awards | ||||
Related Party Transaction [Line Items] | ||||
Managing Director and CEO compensation per retirement agreement | $ 3,571 |
Contingencies - Environmental C
Contingencies - Environmental Contingencies (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Total recorded liabilities | $ 2,441,000 |
Expected recoveries of future expenditures | 574,000 |
Net recorded liability | 1,867,000 |
Environmental issue | |
Loss Contingencies [Line Items] | |
Environmental liability insurance maximum coverage per incident | 20,000,000 |
Environmental liability insurance annual coverage limit | $ 20,000,000 |
Contingencies - Legal Proceedin
Contingencies - Legal Proceedings (Details) | Apr. 05, 2019Plaintiff |
Settled litigation | |
Loss Contingencies [Line Items] | |
Number of plaintiffs | 2 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Total inventory | $ 196,611 | $ 196,721 |
Nonfuel products | ||
Inventory [Line Items] | ||
Total inventory | 161,560 | 163,302 |
Fuel products | ||
Inventory [Line Items] | ||
Total inventory | $ 35,051 | $ 33,419 |