Company: CAPL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000950170-25-028082
Chunk: 194

Company: CrossAmerica Partners LP
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1B
Chunk 194
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 will be divided by the Funds Flow from Operations per Unit for the three-year period ending on December 31, 2024 as the reference period. The payout percentage for Increase in Funds Flow from Operations per Unit will range from 0-200% of 50% of the Initial Target Dollar Amount.

“Funds Flow from Operations per Unit” is defined as distributable cash flow per Unit, excluding maintenance capital expenditures or any other such capital expenditures typically included in calculating distributable cash flow.

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Partnership Leverage

The target value associated with Partnership Leverage is determined as follows. First, Partnership Leverage will be calculated for each of the respective twelve-month periods ending on December 31, 2025, 2026 and 2027. Next, “Average Partnership Leverage” will be calculated as the sum of three times the Leverage for the year ending December 31, 2027, plus two times the Leverage for the year ending December 31, 2026, plus the Leverage for the year ending December 31, 2025, divided by six (i.e., Average Partnership Leverage will be a weighted average with greater emphasis given to the latter years in the Measurement Period). The payout percentage for Partnership Leverage will range from 0-200% of 50% of the Initial Dollar Target Amount.

“Partnership Leverage” is defined as the ratio of the Partnership’s total debt as of a specified date (as determined in accordance with the Partnership’s GAAP financial statements) divided by EBITDA (as defined in the CAPL Credit Facility) for the twelve-month period prior to such specified date. In case of acquisitions, EBITDA will be calculated on a pro forma basis for such acquisitions, providing that the debt incurred for such acquisitions is reflected in the total debt amount.

Distributable cash flow per Unit and EBITDA are calculated consistent with the Partnership’s financial information filed with the Securities and Exchange Commission.

2021 PBUAs Results

In October 2021, we granted the 2021 PBUAs to Messrs. Nifong, Lynch and Brecker and Ms. Topper. The targets for the 2021 PBUA award included performance goals weighted 65% for Increase of Funds Flow from Operations per Unit and 35% for Partnership Leverage, with a performance period from January 1, 2022 to December 31, 2024 (“2021 Measurement Period”), subject to certain discretionary adjustments as determined