ARKO Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

3 Months Ended

Mar. 31, 2022

4. Leases

As of March 31, 2022, the Company leased 1,136 of the convenience stores that it operates, 163 independent dealer locations and certain office and storage spaces, including land and buildings in certain cases. Most of the lease agreements are for long-term periods, ranging from 15 to 20 years, and generally include several renewal options for extension periods for five to 25 years each. Additionally, the Company leases certain store equipment, office equipment, automatic tank gauges, store lighting and fuel dispensers.

The components of lease cost recorded on the condensed consolidated statements of operations were as follows:


	For the Three Months Ended March 31,
	2022		2021
	(in thousands)
Finance lease cost:
Depreciation of right-of-use assets	$	3,047	$	3,317
Interest on lease liabilities		4,371		4,446
Operating lease costs included in store operating expenses		34,295		32,334
Operating lease costs included in general and administrative expenses		387		396
Lease cost related to variable lease payments, short-term leases and leases of low value assets		644		375
Right-of-use asset impairment charges		—		111
Total lease costs	$	42,744	$	40,979