Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2.2
Leases
9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases

5. Leases

As of September 30, 2022, the Company leased 1,120 of the convenience stores that it operates, 169 independent dealer locations, 114 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 September 30,

 

 

For the Nine Months
Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of right-of-use assets

 

$

3,020

 

 

$

3,390

 

 

$

9,104

 

 

$

10,117

 

Interest on lease liabilities

 

 

4,226

 

 

 

4,348

 

 

 

12,857

 

 

 

13,168

 

Operating lease costs included in store operating expenses

 

 

36,758

 

 

 

32,709

 

 

 

105,411

 

 

 

97,534

 

Operating lease costs included in general and administrative
   expenses

 

 

473

 

 

 

425

 

 

 

1,211

 

 

 

1,279

 

Lease cost related to variable lease payments, short-term
   leases and leases of low value assets

 

 

602

 

 

 

674

 

 

 

1,815

 

 

 

1,507

 

Right-of-use asset impairment charges

 

 

911

 

 

 

507

 

 

 

911

 

 

 

1,030

 

Total lease costs

 

$

45,990

 

 

$

42,053

 

 

$

131,309

 

 

$

124,635

 

 

Supplemental balance sheet date related to leases was as follows:

 

 

September 30,
2022

 

 

December 31,
2021

 

 

 

(in thousands)

 

Operating leases

 

 

 

 

 

 

Weighted average remaining lease term (in years)

 

 

13.9

 

 

 

14.1

 

Weighted average discount rate

 

 

7.7

%

 

 

7.3

%

Financing leases

 

 

 

 

 

 

Weighted average remaining lease term (in years)

 

 

23.5

 

 

 

23.8

 

Weighted average discount rate

 

 

7.2

%

 

 

7.3

%

As of September 30, 2022, maturities of lease liabilities for operating lease obligations and finance lease obligations having an initial or remaining non-cancellable lease terms in excess of one year were presented in the table below. 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)

 

October 2022 through September 2023

 

$

144,419

 

 

$

22,363

 

October 2023 through September 2024

 

 

145,600

 

 

 

21,006

 

October 2024 through September 2025

 

 

146,545

 

 

 

21,018

 

October 2025 through September 2026

 

 

146,281

 

 

 

20,745

 

October 2026 through September 2027

 

 

144,038

 

 

 

20,707

 

Thereafter

 

 

1,281,148

 

 

 

430,132

 

Gross lease payments

 

$

2,008,031

 

 

$

535,971

 

Less: imputed interest

 

 

(810,629

)

 

 

(303,048

)

Total lease liabilities

 

$

1,197,402

 

 

$

232,923