Company: CAPL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028082
Chunk: 54

Company: CrossAmerica Partners LP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 54
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 wholesale motor fuel distribution gross income and LGWS records the non-qualifying retail sale.

•As of December 31, 2024, the average remaining motor fuel distribution and lease agreement term for our commission agents was 1.2 years.

Wholesale Segment

The wholesale segment includes the wholesale distribution of motor fuel to lessee dealers and independent dealers. We have exclusive motor fuel distribution contracts with lessee dealers who lease the property from us. We also have exclusive distribution contracts with independent dealers to distribute motor fuel but do not collect rent from the independent dealers. Below is a description of the wholesale segment's principal customer groups.

Independent Dealer

•The independent dealer owns or leases the property and owns all motor fuel and convenience store inventory.

•We contract to exclusively distribute motor fuel to the independent dealer at rack-plus pricing or, in some cases, DTW.

•Under our distribution contracts, we agree to supply a particular branded motor fuel or unbranded motor fuel to a site or group of sites and arrange for all transportation.

•Distribution contracts with independent dealers are typically seven to 15 years in length.

•As of December 31, 2024, the average remaining distribution contract term was 4.9 years.

Lessee Dealer

•We own or lease the property and then lease or sublease the site to a dealer.

•The lessee dealer owns all motor fuel and retail site inventory and sets its own pricing and gross profit margins.

•We collect wholesale motor fuel margins at rack-plus pricing or, in some cases, DTW.

•Under our distribution contracts, we agree to supply a particular branded motor fuel or unbranded motor fuel to a site or group of sites and arrange for all transportation.

•Exclusive distribution contracts with dealers who lease property from us run concurrent in length to the retail site’s lease period (generally three to 10 years).

•Leases are generally triple net leases.

•As of December 31, 2024, the average remaining lease agreement term was 2.5 years.

8

Business Strategy and Objective

Our primary business objective is to generate sufficient cash flows from operations to make quarterly cash distributions to our unitholders and, over time, to increase our quarterly cash distributions while maintaining discipline with leverage. The amount of any distribution is subject to the discretion of the Board, and the Board may modify or revoke the cash distribution policy at any time. Our Partnership Agreement does not require us to pay any distributions.

Our business strategy to achieve our objective of paying and, over time,