What was the accumulated amortization for Aplus customer relations including supply agreements as of December 31, 2023?

According to Aplus's 2024 Franchise Disclosure Document, as of December 31, 2023, the accumulated amortization for customer relations including supply agreements was $440. This figure represents the total amount of amortization that has been recognized on these specific intangible assets up to that date. The gross carrying amount for these assets was $669, resulting in a net book value of $229.

Amortization is the systematic allocation of the cost of an intangible asset over its useful life. In the case of Aplus, customer relations and supply agreements are amortized on a straight-line basis, meaning the same amount of expense is recognized each period, over the remaining terms of the agreements, which generally range from five to twenty years. This accounting practice reflects the gradual consumption of the economic benefits associated with these assets.

For a prospective Aplus franchisee, understanding these figures is important for assessing the financial health and accounting practices of the company. It provides insight into how Aplus values and manages its intangible assets, which can be a significant component of its overall value. Additionally, it's worth noting that the company performed annual impairment tests on indefinite-lived intangible assets during the fourth quarters of 2023, 2022, and 2021, and no impairments were recorded during those years.