SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) December 21, 1999 FFP MARKETING COMPANY, INC. (Exact name of registrant as specified in its charter) Texas 1-13727 75-2735779 (State or other jurisdiction of (Commission (IRS employer incorporation or organization) File Number) Identification No.) 2801 Glenda Avenue, Fort Worth, Texas 76117-4391 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 817/838-4700 Not applicable (Former name or former address, if changed since last report) ITEM 4 KPMG LLP ("KPMG") served as the registrant's independent accountant to audit the consolidated financial statements of the registrant for each of its two most recent years ended December 27, 1998, and December 28, 1997. In November and December 1999, the registrant sought proposals from four accounting firms, including KPMG and Grant Thornton LLP ("Grant Thornton"), with respect to the audit of the registrant's consolidated financial statements for its fiscal year ending December 26, 1999. On December 15, 1999, the registrant vebally advised KMPG that, as part of the registrant's effort to reduce general and administrative expenses, management would recommend a dismissal of KPMG as the registrant's outside accounting firm to audit the registrant's consolidated financial statements for its fiscal year ending December 26, 1999 and the engagement of Grant Thornton in that capacity. On December 21, 1999, the audit committee of the registrant's board of Directors approved these actions. The reports of KPMG on the financial statements of the registrant for its two most recent years do not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles. There were no disagreements between the registrant and KPMG during the registrant's two most recent fiscal years or any subsequent interim period preceding the dismissal as to any matter of accounting principles or practices, financial statement disclosure, or auditing scope of procedure. After its audit of the registrant's financial statements for its fiscal year ended December 27, 1998, KPMG advised the registrant that certain internal control matters constituted material weaknesses and reportable conditions. During its fiscal year 1999, the registrant has taken remedial action in an attempt to rectify and improve each of these matters. The audit committee of the board of directors of the registrant has discussed these matters with KPMG, and the registrant has authorized KPMG to respond fully to the inquiries of Grant Thornton about these matters. On October 15, 1999, FFP Partners, L.P., a Delaware limited partnership, closed new financing with a 20-year term from a third party lender and repaid in full its long-term indebtedness then payable to the registrant. As a condition of that new financing, on the same date, the registrant and FFP Partners, L.P. both executed a new real estate lease with a 20-year term, and exercised options to extend the term of prior real estate leases to a 20-year term, for land and buildings at 63 convenience store locations owned by FFP Partners, L.P. and operated by the registrant. At the time of registrant's preparation of Form 10-Q for its third quarter of 1999, which was filed prior to the dismissal of KPMG as registrant's accounting firm, KPMG concluded that such 20-year real estate leases should be accounted for as capital leases instead of operating leases. The determination as to whether these lease should be treated as capital leases or operating leases for accounting purposes could materially impact the financial statements of registrant for its 1999 fiscal year. As of the date of the filing of this Form 8-K, registrant has not yet determined the correct accounting treatment of such leases because it has not yet completed its review of all of the relevant factual matters necessary to make such a determination. Therefore, this issue was not resolved to the satisfaction of KPMG prior to its dismissal. As of this date, registrant has not sought the opinion, advice or views of Grant Thornton as to this issue or any other accounting principle, and this issue had no bearing on the registrant's decision to change auditing firms. Item 7. Financial Statements and Exhibits (a) Not applicable (b) Not applicble (c) Exhibits 16.1 Letter of KPMG LLP dated December 29, 1999 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: December 29, 1999 FFP Marketing Company, Inc. (Registrant) By: /s/ Craig T. Scott Craig T. Scott Vice President - Finance