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, 2021

4. Leases

As of March 31, 2021, the Company leased 1,125 of its convenience stores that it operates, 158 dealer locations and certain office spaces used as its headquarters in the US, 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.

Under ASC 842, the components of lease cost recorded on the condensed consolidated statements of operations were as follows:


	For the three months ended March 31,
	2021			2020
	(in thousands)
Finance lease cost:
Depreciation of right-of-use assets	$	3,317	$		3,192
Interest on lease liabilities		4,446			4,326
Operating lease costs included in store operating expenses		32,334			27,244
Operating lease costs included in general and administrative expenses		396			327
Lease cost related to variable lease payments, short-term leases and leases of low value assets		375			150
Right-of-use asset impairment charges		111			639
Total lease costs	$	40,979	$		35,878