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, 2024

6. Leases

As of March 31, 2024, the Company leased 1,266 of the convenience stores that it operates, 207 dealer locations, 155 cardlock 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 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,
	2024		2023
	(in thousands)
Finance lease cost:
Depreciation of right-of-use assets	$	2,452	$	2,853
Interest on lease liabilities		4,300		4,162
Operating lease costs included in site operating expenses		46,675		41,584
Operating lease costs included in general and administrative expenses		538		534
Lease cost related to variable lease payments, short-term leases and leases of low value assets		628		690
Right-of-use asset impairment charges and loss (gain) on disposals of leases		1,536		(540	)
Total lease costs	$	56,129	$	49,283