Company: CAPL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028082
Chunk: 164

Company: CrossAmerica Partners LP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 164
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 to prevent future contamination.We maintain insurance of various types with varying levels of coverage that is considered adequate under the circumstances to cover operations and properties. The insurance policies are subject to deductibles that are considered reasonable and not excessive. In addition, we have entered into indemnification and escrow agreements with various sellers in conjunction with several of their respective acquisitions, as further described below. Financial responsibility for environmental remediation is negotiated in connection with each acquisition transaction. In each case, an assessment is made of potential environmental liability exposure based on available information. Based on that assessment and relevant economic and risk factors, a determination is made whether to, and the extent to which we will, assume liability for existing environmental conditions.The table below presents a roll-forward of our environmental liabilities (in thousands): 

        2024

        2023

        Balance at beginning of year
         
        $
        7,448

        $
        7,485

        Provision for new environmental losses

        1,240

        1,161

        Changes in estimates for previously incurred losses

        3,479

        2,028

        Payments

        (3,734
        )

        (3,226
        )

        Balance at end of year

        8,433

        7,448

        Current portion, included within accrued expenses and other current liabilities

        3,098

        3,394

        Long-term portion, included within other long-term liabilities
         
        $
        5,335

        $
        4,054

      At December 31, 2024 and 2023, we were indemnified by third-party escrow funds, state funds or insurance totaling $6.3 million and $5.3 million, respectively, which are recorded as indemnification assets and included within other current and other noncurrent assets on the consolidated balance sheets. State funds represent probable state reimbursement amounts. Reimbursement will depend upon the continued maintenance and solvency of the state. Insurance coverage represents amounts deemed probable of reimbursement under insurance policies.

76 

CROSSAMERICA PARTNERS LPNOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

The estimates used in these reserves are based on all known facts at the time and an assessment of the ultimate remedial action outcomes. We will adjust loss accruals as further information becomes available or circumstances change. Among the many uncertainties that impact the estimates are the necessary regulatory approvals for, and potential modifications