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

Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

Leases (Tables)

6 Months Ended

Jun. 30, 2023

Summary of components of lease cost recorded on the consolidated statements of operations

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


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
	(in thousands)
Finance lease cost:
Depreciation of right-of-use assets	$	2,785	$	3,037	$	5,638	$	6,084
Interest on lease liabilities		4,142		4,260		8,304		8,631
Operating lease costs included in store operating expenses		45,752		34,358		87,336		68,653
Operating lease costs included in general and administrative expenses		587		351		1,121		738
Lease cost related to variable lease payments, short-term leases and leases of low value assets		711		569		1,401		1,213
Right-of-use asset impairment charges and loss (gain) on disposals of leases		1,994		—		1,454		—
Total lease costs	$	55,971	$	42,575	$	105,254	$	85,319

Summary of supplemental balance sheet date related to leases

Supplemental balance sheet date related to leases was as follows:


	June 30, 2023			December 31, 2022
	(in thousands)
Operating leases
Weighted average remaining lease term (in years)		14.4			14.1
Weighted average discount rate		7.8	%		7.7	%
Financing leases
Weighted average remaining lease term (in years)		23.1			23.4
Weighted average discount rate		7.2	%		7.2	%

Operating & Finance Leases, Liability, Maturity

The minimum lease payments presented below include periods where an option is reasonably certain to be exercised and do not take into consideration any future consumer price index adjustments for these agreements.


	Operating			Financing
	(in thousands)
July 2023 through June 2024	$	174,609		$	21,279
July 2024 through June 2025		176,244			21,046
July 2025 through June 2026		176,841			20,914
July 2026 through June 2027		174,535			20,772
July 2027 through June 2028		171,421			20,860
Thereafter		1,688,912			414,378
Gross lease payments	$	2,562,562		$	519,249
Less: imputed interest		(1,076,015	)		(290,462	)
Total lease liabilities	$	1,486,547		$	228,787