What was the reported value of fuel inventories for Aplus as of December 31, 2023?

According to Aplus's 2024 Franchise Disclosure Document, the net value of fuel inventories reported on December 31, 2023, was $876. The total value of inventories, net, which includes fuel and other inventories, was $889 as of the same date. This figure reflects the value of Aplus's fuel and other inventories after accounting for reserves related to the lower of cost or market valuation.

The FDD also notes that Aplus uses the last-in-first-out (LIFO) method to account for fuel inventories, where the cost of fuel sold includes acquisition, transportation, and storage costs, adjusted for changes in LIFO inventory layers. For merchandise inventories, Aplus uses the retail inventory method, stating them at the lower of average cost or market, and includes allowances for shortages and obsolescence.

Prospective franchisees should understand how Aplus values its inventory, as this can impact the cost of goods sold and, consequently, the profitability of their franchise. The LIFO method, in particular, can have tax implications and may affect how Aplus reports its financial performance. Franchisees should also inquire about how inventory adjustments and obsolescence are handled, as these can impact the value of their franchise's assets.