ARKO Corp. Annual report pursuant to Section 13 and 15(d)

Segment Reporting (Table)

12 Months Ended

Dec. 31, 2021

The effect of these inter-segment transactions was eliminated in the consolidated financial statements.


Year Ended December 31, 2021	Retail		Wholesale		GPMP			All Other			Total
	(in thousands)
Revenues
Fuel revenue	$	3,048,893	$	2,659,706	$	5,734		$	—		$	5,714,333
Merchandise revenue		1,616,404		—		—			—			1,616,404
Other revenues, net		63,271		22,298		1,092			—			86,661
Total revenues from external customers		4,728,568		2,682,004		6,826			—			7,417,398
Inter-segment		—		—		4,384,227			1,264			4,385,491
Total revenues from reportable segments		4,728,568		2,682,004		4,391,053			1,264			11,802,889
Operating income		240,233		21,998		91,619			1,264			355,114
Interest and financial expenses, net						(14,363	)		—			(14,363	)
Income tax expense									(221	)		(221	)
Income from equity investment									186			186
Net income from reportable segments											$	340,716


Year Ended December 31, 2020	Retail		Wholesale		GPMP			All Other			Total
	(in thousands)
Revenues
Fuel revenue	$	1,940,303	$	508,175	$	3,923		$	—		$	2,452,401
Merchandise revenue		1,494,342		—		—			—			1,494,342
Other revenues, net		53,424		9,335		897			—			63,656
Total revenues from external customers		3,488,069		517,510		4,820			—			4,010,399
Inter-segment		—		—		1,706,233			3,041			1,709,274
Total revenues from reportable segments		3,488,069		517,510		1,711,053			3,041			5,719,673
Operating income		200,000		3,523		47,036			3,041			253,600
Interest and financial expenses, net						(6,277	)		(1,817	)		(8,094	)
Income tax expense									(303	)		(303	)
Loss from equity investment									(1,269	)		(1,269	)
Net income from reportable segments											$	243,934


Year Ended December 31, 2019	Retail		Wholesale		GPMP			All Other			Total
	(in thousands)
Revenues
Fuel revenue	$	2,537,455	$	159,597	$	6,388		$	—		$	2,703,440
Merchandise revenue		1,375,438		—		—			—			1,375,438
Other revenues, net		43,882		5,264		784			—			49,930
Total revenues from external customers		3,956,775		164,861		7,172			—			4,128,808
Inter-segment		—		—		2,042,714			6,394			2,049,108
Total revenues from reportable segments		3,956,775		164,861		2,049,886			6,394			6,177,916
Operating income		90,454		52		43,500			6,394			140,400
Interest and other financial expenses, net						(2,484	)		(677	)		(3,161	)
Income tax expense									(1,038	)		(1,038	)
Loss from equity investment									(507	)		(507	)
Net income from reportable segments											$	135,694

A reconciliation of total revenues from reportable segments to total revenues on the consolidated statements of operations was as follows:


	For the Year Ended December 31,
	2021			2020			2019
	(in thousands)
Total revenues from reportable segments	$	11,802,889		$	5,719,673		$	6,177,916
Other revenues, net		—			(167	)		(118	)
Elimination of inter-segment revenues		(4,385,491	)		(1,709,274	)		(2,049,108	)
Total revenues	$	7,417,398		$	4,010,232		$	4,128,690

A reconciliation of net income from reportable segments to net income (loss) on the consolidated statements of operations was as follows:


	For the Year Ended December 31,
	2021			2020			2019
	(in thousands)
Net income from reportable segments	$	340,716		$	243,934		$	135,694
Amounts not allocated to segments:
Other revenues, net		—			(167	)		(118	)
Store operating expenses		3,287			(2,380	)		(4,116	)
General and administrative expenses		(121,697	)		(91,447	)		(66,743	)
Depreciation and amortization		(89,822	)		(67,023	)		(58,031	)
Other expenses, net		(3,536	)		(9,228	)		(3,674	)
Interest and other financial expenses, net		(58,108	)		(44,852	)		(45,045	)
Income tax (expense) benefit		(11,413	)		1,802			(5,129	)
Net income (loss)	$	59,427		$	30,639		$	(47,162	)