Leases (Tables)

9 Months Ended

Sep. 30, 2024

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,
	2024		2023		2024		2023
	(in thousands)
Finance lease cost:
Depreciation of right-of-use assets	$	2,471	$	2,695	$	7,453	$	8,333
Interest on lease liabilities		4,302		4,229		12,955		12,533
Operating lease costs included in site operating expenses		48,105		46,939		142,515		134,275
Operating lease costs included in general and administrative expenses		525		553		1,593		1,674
Lease cost related to variable lease payments, short-term leases and leases of low value assets		611		556		1,850		1,957
Right-of-use asset impairment charges and loss (gain) on disposals of leases		856		2,019		1,586		3,473
Total lease costs	$	56,870	$	56,991	$	167,952	$	162,245

Summary of supplemental balance sheet date related to leases

Supplemental balance sheet data related to leases was as follows:


	September 30, 2024			December 31, 2023
	(in thousands)
Operating leases
Assets
Right-of-use assets under operating leases	$	1,406,429		$	1,384,693
Liabilities
Operating leases, current portion		70,120			67,053
Operating leases		1,424,834			1,395,032
Total operating leases		1,494,954			1,462,085
Weighted average remaining lease term (in years)		13.9			14.0
Weighted average discount rate		7.7	%		7.8	%
Financing leases
Assets
Right-of-use assets	$	219,963		$	215,174
Accumulated amortization		(60,853	)		(52,506	)
Right-of-use assets under financing leases, net		159,110			162,668
Liabilities
Financing leases, current portion		11,175			9,186
Financing leases		211,380			213,032
Total financing leases		222,555			222,218
Weighted average remaining lease term (in years)		20.5			21.2
Weighted average discount rate		7.9	%		7.9	%

Schedule of Operating & Finance Leases, Liability, Maturity

The minimum lease payments presented below include periods for which an option is reasonably certain to be exercised and do not take into consideration any future consumer price index adjustments that may become applicable under these agreements.


	Operating			Financing
	(in thousands)
October 2024 through September 2025	$	180,813		$	27,905
October 2025 through September 2026		181,290			21,532
October 2026 through September 2027		179,604			21,488
October 2027 through September 2028		176,859			28,480
October 2028 through September 2029		175,104			21,563
Thereafter		1,627,393			383,094
Gross lease payments	$	2,521,063		$	504,062
Less: imputed interest		(1,026,109	)		(281,507	)
Total lease liabilities	$	1,494,954		$	222,555

ARKO Corp. 10-Q