CrossAmerica Partners(CAPL) - 2022 Q4 - Annual Report

Financial Obligations - As of December 31, 2022, the company had $606.1 million outstanding on its CAPL Credit Facility, with an effective interest rate of 4.2% after accounting for interest rate swap contracts[110]. - The company had $159.0 million outstanding under its Term Loan Facility, with a weighted-average interest rate of 6.5% as of December 31, 2022[112]. - A one percentage point change in LIBOR would impact annual interest expense by approximately $3.1 million for the CAPL Credit Facility and $1.6 million for the Term Loan Facility[110][112]. Risk Management - The company is exposed to market risks including interest rate risk and commodity price risk, which could affect its financial performance[109]. - The company does not currently engage in hedging activities for gasoline and diesel fuel purchases, allowing it to pass on price changes to customers[113]. - The company operates solely in the U.S. and is not exposed to foreign currency risk[115]. Internal Controls - The company assessed its internal control over financial reporting as effective as of December 31, 2022, based on COSO criteria[134]. - The independent auditor expressed an unqualified opinion on the company's internal control over financial reporting as of December 31, 2022[135]. Profitability Influences - The company anticipates future retail and wholesale gross profits to be influenced by trends in gasoline and diesel demand in its operating regions[130]. - A $10 per barrel change in crude oil prices would impact annual wholesale motor fuel gross profit by approximately $2.8 million due to prompt payment discounts[114]. - A significant portion of total gallons purchased is subject to Terms Discounts for prompt payment and other rebates, which are recorded within cost of sales[114]. - The dollar value of discounts related to motor fuel prices fluctuates with changes in purchase prices[114]. Capital Investments - The company plans to continue evaluating its capital investments and potential acquisitions to enhance operational results[130]. - The company issued 25,000 Series A Preferred Interests at a price of $1,000 per interest, totaling $25 million, with an initial liquidation preference of $1,000 per share[142].