What was the amount of Aplus's Senior Notes borrowings in 2023?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
e | 394 | | Balance at December 31, 2023 | $ 978 | | | |
The accompanying notes are an integral part of these consolidated financial statements.
Year Ended December 31,
SUNOCO LP CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| OPERATING ACTIVITIES: | |||
| Net income | $ 394 | $ 475 | $ 524 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation, amortization and accretion | 187 | 193 | 177 |
| Amortization of deferred financing fees | 8 | 7 | 7 |
| Gain on disposal of assets | (7) | (13) | (14) |
| Loss on extinguishment of debt | — | — | 36 |
| Non-cash unit-based compensation expense | 17 | 14 | 16 |
| Deferred income tax | 13 | 28 | 10 |
| Inventory adjustments | 114 | (5) | (190) |
| Equity in earnings of unconsolidated affiliates | (5) | (4) | (4) |
| Changes in operating assets and liabilities, net of acquisitions: | |||
| Accounts receivable | 34 | (312) | (231) |
| Receivables from affiliates | (5) | (3) | (1) |
| Inventories | (182) | (172) | 38 |
| Other assets | 47 | (94) | (95) |
| Accounts payable | (101) | 390 | 296 |
| Accounts payable to affiliates | 61 | 50 | (20) |
| Accrued expenses and other current liabilities | 43 | — | 9 |
| Other non-current liabilities | (18) | 7 | (15) |
| Net cash provided by operating activities | 600 | 561 | 543 |
| INVESTING ACTIVITIES: | |||
| Capital expenditures | (215) | (186) | (174) |
| Distributions from unconsolidated affiliates in excess of cumulative earnings | 9 | 8 | 9 |
| Cash paid for acquisitions, net of cash acquired | (111) | (318) | (256) |
| Proceeds from disposal of property and equipment | 31 | 32 | 34 |
| Other | (2) | — | — |
| Net cash used in investing activities | (288) | (464) | (387) |
| FINANCING ACTIVITIES: | |||
| Senior Notes borrowings | 500 | — | 800 |
| Senior Notes repayments | — | — | (1,252) |
| Credit Facility borrowings | 3,283 | 4,127 | 1,922 |
| Credit Facility repayments | (3,772) | (3,808) | (1,341) |
| Loan origination costs | (5) | — | — |
| Cash distribution to unitholders, including incentive distributions | (371) | (359) | (357) |
| Net cash used in financing activities | (365) | (40) | (228) |
| Net increase (decrease) in cash and cash equivalents | (53) | 57 | (72) |
| Cash and cash equivalents at beginning of period | 82 | 25 | 97 |
| Cash and cash equivalents at end of period | $ 29 | $ 82 | $ 25 |
| Year Ended December 31, | |||
| 2023 | 2022 | 2021 | |
| SUPPL |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the company had Senior Notes borrowings of $500 million in 2023. This indicates the amount of money Aplus raised through the issuance of senior notes during that year.
Senior notes are a type of debt that Aplus is obligated to repay. These notes typically have a fixed interest rate and a specific maturity date. In Aplus's case, the senior notes are unsecured, meaning they are not backed by any specific assets. However, they rank equally with Aplus's other senior obligations.
For a prospective Aplus franchisee, this information provides insight into the company's financial activities and how it manages its debt. While the borrowings themselves don't directly impact the day-to-day operations of a franchise, they reflect the overall financial strategy and health of Aplus. Understanding the company's debt structure can help a franchisee assess the stability and long-term viability of the franchise system.