What was the total Aplus gain on disposal of assets in 2021?
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 u |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the gain on disposal of assets in 2021 was $(14). This indicates a loss, rather than a gain, from the disposal of assets during that year. It is important to note that this figure is part of the adjustments made to reconcile net income to net cash provided by operating activities.
For a prospective Aplus franchisee, this information provides insight into the company's financial performance and how it manages its assets. While a loss on disposal of assets might seem negative, it is crucial to understand the context. Asset disposal could be part of a strategic decision to replace older assets with newer, more efficient ones, which could benefit the franchisee in the long run.
It is also worth noting that the FDD includes similar figures for other years, such as a gain on disposal of assets of $(13) in 2022 and $(7) in 2023. Reviewing these trends over multiple years can provide a more comprehensive understanding of Aplus's asset management practices. A prospective franchisee should discuss these figures with Aplus to understand the reasons behind the gains or losses and the company's strategy for asset management.