What was the reported net value of Aplus's property and equipment after subtracting accumulated depreciation?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
osts, by performing independent market research and analyses.
/s/ GRANT THORNTON LLP
We have served as the Partnership's auditor since 2015.
Dallas, Texas February 16, 2024
SUNOCO LP CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
| December 31, 2023 | December 31, 2022 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 29 | $ 82 |
| Accounts receivable, net | 856 | 890 |
| Accounts receivable from affiliates | 20 | 15 |
| Inventories, net | 889 | 821 |
| Other current assets | 133 | 175 |
| Total current assets | 1,927 | 1,983 |
| Property and equipment | 2,970 | 2,796 |
| Accumulated depreciation | (1,134) | (1,036) |
| Property and equipment, net | 1,836 | 1,760 |
| Other assets: | ||
| Operating lease right-of-use assets, net | 506 | 524 |
| Goodwill | 1,599 | 1,601 |
| Intangible assets, net | 544 | 588 |
| Other non-current assets | 290 | 245 |
| Investments in unconsolidated affiliates | 124 | 129 |
| Total assets | $ 6,826 | $ 6,830 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 828 | $ 966 |
| Accounts payable to affiliates | 170 | 109 |
| Accrued expenses and other current liabilities | 353 | 310 |
| Operating lease current liabilities | 22 | 21 |
| Total current liabilities | 1,373 | 1,406 |
| Operating lease non-current liabilities | 511 | 528 |
| Long-term debt, net | 3,580 | 3,571 |
| Advances from affiliates | 102 | 116 |
| Deferred tax liabilities | 166 | 156 |
| Other non-current liabilities | 116 | 111 |
| Total liabilities | 5,848 | 5,888 |
| Commitments and contingencies (Note 13) | ||
| Equity: | ||
| Limited partners: | ||
| Common unitholders (84,408,014 and 84,054,765 units issued and outstanding as of December 31, 2023 and 2022, respectively) | 978 | 942 |
| Class C unitholders - held by subsidiary (16,410,780 units issued and outstanding as of December 31, 2023 and 2022) | — | — |
| Total equity | 978 | 942 |
| Total liabilities and equity | $ 6,826 | $ 6,830 |
The accompanying notes are an integral part of these consolidated financial statements.
SUNOCO LP CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Dollars in millions, except per unit data)
| Year Ended December 31, | |||||
|---|---|---|---|---|---|
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the net value of property and equipment, after subtracting accumulated depreciation, was reported for both December 31, 2023, and December 31, 2022. As of December 31, 2023, the net value was $1,836. As of December 31, 2022, the net value was $1,760. This figure represents the book value of Aplus's property and equipment after accounting for the reduction in value due to depreciation.
For a prospective Aplus franchisee, understanding the net value of property and equipment can provide insight into the company's asset base and how it manages depreciation. Depreciation is an accounting method used to allocate the cost of an asset over its useful life, reflecting the wear and tear or obsolescence of the asset. The accumulated depreciation represents the total depreciation recorded up to a specific date.
The difference between the total property and equipment and the accumulated depreciation provides the net value, which is what Aplus reports on its balance sheet. Reviewing these figures over time can help potential franchisees assess Aplus's investment in its infrastructure and how it is maintaining its assets. It's important to note that these figures reflect Aplus's overall financial position and may not directly correlate to the financial performance of an individual franchise location.
It is also important to note that long-lived assets related to asset retirement obligations aggregated $13 million and $14 million as of December 31, 2023 and 2022, respectively, and were reflected as property and equipment, net, on Aplus's consolidated balance sheets. This indicates that Aplus has significant obligations related to the retirement of assets, such as underground storage tanks, which are factored into the net value of property and equipment.