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, 2022

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,
	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

Summary of supplemental balance sheet data related to leases

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	%

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)
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