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

Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

Leases (Tables)

9 Months Ended

Sep. 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 September 30,				For the Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)
Finance lease cost:
Depreciation of right-of-use assets	$	2,695	$	3,020	$	8,333	$	9,104
Interest on lease liabilities		4,229		4,226		12,533		12,857
Operating lease costs included in store operating expenses		46,939		36,758		134,275		105,411
Operating lease costs included in general and administrative expenses		553		473		1,674		1,211
Lease cost related to variable lease payments, short-term leases and leases of low value assets		556		602		1,957		1,815
Right-of-use asset impairment charges and loss on disposals of leases		2,019		911		3,473		911
Total lease costs	$	56,991	$	45,990	$	162,245	$	131,309

Summary of supplemental balance sheet date related to leases

Supplemental balance sheet data related to leases was as follows:


	September 30, 2023			December 31, 2022
	(in thousands)
Operating leases
Weighted average remaining lease term (in years)		14.2			14.1
Weighted average discount rate		7.8	%		7.7	%
Financing leases
Weighted average remaining lease term (in years)		22.1			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 futureconsumer price index adjustments for these agreements.


	Operating			Financing
	(in thousands)
October 2023 through September 2024	$	175,877		$	26,233
October 2024 through September 2025		177,272			27,100
October 2025 through September 2026		177,298			20,814
October 2026 through September 2027		174,992			20,777
October 2027 through September 2028		170,208			21,005
Thereafter		1,662,918			409,024
Gross lease payments	$	2,538,565		$	524,953
Less: imputed interest		(1,058,523	)		(287,316	)
Total lease liabilities	$	1,480,042		$	237,637