ARKO Corp. Annual report pursuant to Section 13 and 15(d)

Segment Reporting (Table)

12 Months Ended

Dec. 31, 2022

The effect of these inter-segment transactions was eliminated in the consolidated financial statements.


Year Ended December 31, 2022	Retail		Wholesale		Fleet Fueling		GPMP			All Other			Total
	(in thousands)
Revenues
Fuel revenue	$	3,887,549	$	3,234,145	$	270,670	$	5,160		$	3,566		$	7,401,090
Merchandise revenue		1,647,642		—		—		—			—			1,647,642
Other revenues, net		67,280		23,451		2,178		1,024			134			94,067
Total revenues from external customers		5,602,471		3,257,596		272,848		6,184			3,700			9,142,799
Inter-segment		—		—		—		5,678,167			4,264			5,682,431
Total revenues from reportable segments		5,602,471		3,257,596		272,848		5,684,351			7,964			14,825,230
Operating income		264,552		33,864		18,382		89,035			792			406,625
Interest and other financial expenses, net								(11,654	)		—			(11,654	)
Income tax benefit											177			177
Loss from equity investment											(74	)		(74	)
Net income from reportable segments													$	395,074


Year Ended December 31, 2021	Retail		Wholesale		GPMP			All Other			Total
	(in thousands)
Revenues
Fuel revenue	$	3,048,893	$	2,659,706	$	5,734		$	—		$	5,714,333
Merchandise revenue		1,616,404		—		—			—			1,616,404
Other revenues, net		63,271		22,298		1,092			—			86,661
Total revenues from external customers		4,728,568		2,682,004		6,826			—			7,417,398
Inter-segment		—		—		4,384,227			1,264			4,385,491
Total revenues from reportable segments		4,728,568		2,682,004		4,391,053			1,264			11,802,889
Operating income		240,233		21,998		91,619			1,264			355,114
Interest and other financial expenses, net						(14,363	)		—			(14,363	)
Income tax expense									(221	)		(221	)
Income from equity investment									186			186
Net income from reportable segments											$	340,716


Year Ended December 31, 2020	Retail		Wholesale		GPMP			All Other			Total
	(in thousands)
Revenues
Fuel revenue	$	1,940,303	$	508,175	$	3,923		$	—		$	2,452,401
Merchandise revenue		1,494,342		—		—			—			1,494,342
Other revenues, net		53,424		9,335		897			—			63,656
Total revenues from external customers		3,488,069		517,510		4,820			—			4,010,399
Inter-segment		—		—		1,706,233			3,041			1,709,274
Total revenues from reportable segments		3,488,069		517,510		1,711,053			3,041			5,719,673
Operating income		200,000		3,523		47,036			3,041			253,600
Interest and other financial expenses, net						(6,277	)		(1,817	)		(8,094	)
Income tax expense									(303	)		(303	)
Loss from equity investment									(1,269	)		(1,269	)
Net income from reportable segments											$	243,934

A reconciliation of total revenues from reportable segments to total revenues on the consolidated statements of operations was as follows:


	For the Year Ended December 31,
	2022			2021			2020
	(in thousands)
Total revenues from reportable segments	$	14,825,230		$	11,802,889		$	5,719,673
Other revenues, net		—			—			(167	)
Elimination of inter-segment revenues		(5,682,431	)		(4,385,491	)		(1,709,274	)
Total revenues	$	9,142,799		$	7,417,398		$	4,010,232

A reconciliation of net income from reportable segments to net income on the consolidated statements of operations was as follows:


	For the Year Ended December 31,
	2022			2021			2020
	(in thousands)
Net income from reportable segments	$	395,074		$	340,716		$	243,934
Amounts not allocated to segments:
Other revenues, net		—			—			(167	)
Store operating expenses		2,264			3,287			(2,380	)
General and administrative expenses		(137,072	)		(121,697	)		(91,447	)
Depreciation and amortization		(94,383	)		(89,822	)		(67,023	)
Other income, net		(9,816	)		(3,536	)		(9,228	)
Interest and other financial expenses, net		(48,355	)		(58,108	)		(44,852	)
Income tax (expense) benefit		(35,734	)		(11,413	)		1,802
Net income	$	71,978		$	59,427		$	30,639