What was the amount of intersegment eliminations for Aplus for the year ended December 31, 2022?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| | Adjusted EBITDA related to unconsolidated affiliates | | | | | | | 10 | | Other non-cash adjustments | | | | | | | 22 | | Adjusted EBITDA | $ | 853 | $ | 111 | | $ | 964 | | Capital expenditures | $ | 132 | $ | 83 | | $ | 215 | | Total assets, end of period | $ | 5,676 | $ | 1,150 | | $ | 6,826 |
| Year Ended December 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|
| Fuel Distribution and Marketing | All Other | Intersegment Eliminations | Totals | ||||
| Revenue | |||||||
| Motor fuel sales | $ | 24,508 | $ | 708 | $ | 25,216 | |
| Non-motor fuel sales | 140 | 230 | 370 | ||||
| Lease income | 132 | 11 | 143 | ||||
| Intersegment sales | 534 | — | (534) | — | |||
| Total revenue | $ | 25,314 | $ | 949 | $ (534) | $ | 25,729 |
| Net income and comprehensive income | $ | 475 | |||||
| Depreciation, amortization and accretion | 193 | ||||||
| Interest expense, net | 182 | ||||||
| Income tax expense | 26 | ||||||
| Non-cash unit-based compens |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the intersegment eliminations for the year ended December 31, 2022, were $534. This figure represents the elimination of sales between Aplus's Fuel Distribution and Marketing segment and its All Other segment to avoid double-counting revenue in the consolidated total. Intersegment eliminations are a standard accounting practice when a company has multiple segments that transact with each other.
For a prospective Aplus franchisee, understanding intersegment eliminations might not directly impact day-to-day operations. However, it is useful for interpreting the overall financial performance of Aplus. Knowing that $534 was eliminated in 2022 due to intersegment transactions provides a clearer picture of how the different parts of Aplus interact financially.
Reviewing these figures over several years, as presented in the FDD, can reveal trends in how Aplus manages its internal transactions and how significant these internal transactions are relative to overall revenue. This can help a franchisee assess the financial integration and efficiency of Aplus's various business segments.