What is the estimated amortization for Aplus finite-lived intangibles for the fiscal year 2025?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
As of December 31, 2023, the Partnership's estimate of amortization for each of the five succeeding fiscal years and thereafter for finite-lived intangibles was as follows:
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Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the company provides an estimate of amortization for finite-lived intangibles. As of December 31, 2023, Aplus estimated the amortization expense to be $44 million for the year ended December 31, 2023. The company also provides estimates for the four subsequent fiscal years.
Specifically, the document states that customer relations and supply agreements have a remaining weighted average life of approximately 10 years. These agreements are amortized using the straight-line method over their remaining terms, which generally range from five to twenty years. Non-compete agreements are amortized over the terms of the respective agreements.
As of December 31, 2023, Aplus provides the following estimates for amortization of finite-lived intangibles for the five succeeding fiscal years: $20 million for 2024, $18 million for 2025, $15 million for 2026, $13 million for 2027, and $12 million for 2028.