What was the total Aplus non-cash unit-based compensation expense in 2022?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| Payment Date | Per Unit Distribution | Total Cash | Distribution to IDR | |
|---|---|---|---|---|
| Distribution | Holders | |||
| February 19, 2021 | $ 0.8255 | $ 69 | $ 18 | |
| May 19, 2021 | 0.8255 | 69 | 18 | |
| August 19, 2021 | 0.8255 | 69 | 18 | |
| November 19, 2021 | 0.8255 | 69 | 18 | |
| February 18, 2022 | 0.8255 | 69 | 18 | |
| May 19, 2022 | 0.8255 | 69 | 18 | |
| August 19, 2022 | 0.8255 | 69 | 18 | |
| November 18, 2022 | 0.8255 | 69 | 18 | |
| February 21, 2023 | 0.8255 | 69 | 18 | |
| May 22, 2023 | 0.8420 | 71 | 19 | |
| August 21, 2023 | 0.8420 | 71 | 19 | |
| November 20, 2023 | 0.8420 | 71 | 19 | |
| February 20, 2024 | 0.8420 | 71 | 19 |
18. Unit-Based Compensation
The Partnership has issued phantom units to its employees and non-employee directors, which vest 60% after three years and 40% after five years. Phantom units have the right to receive distributions prior to vesting. The fair value of these units is the market price of our common units on the grant date, and is amortized over the five-year vesting period using the straight-line method. Unit-based compensation expense related to the Partnership included in our consolidated statements of operations and comprehensive income was $17 million, $14 million and $16 million for the years ended December 31, 2023, 2022 and 2021, respectively. The total fair value of phantom units vested for the years ended December 31, 2023, 2022 and 2021, was $30 million, $22 million and $20 million, respectively, based on the market price of SUN's common units as of the vesting date. Unre
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the total non-cash unit-based compensation expense for the year ended December 31, 2022, was $14 million. This expense relates to phantom units issued to employees and non-employee directors. These units vest over time, with 60% vesting after three years and 40% after five years.
The fair value of these phantom units is determined by the market price of Aplus's common units on the grant date. This value is then amortized over the vesting period using the straight-line method. The total fair value of phantom units vested in 2022 was $22 million.
It's important to note that as of December 31, 2023, Aplus had $33 million in unrecognized compensation expenses related to unvested phantom units. These expenses are expected to be recognized over a weighted average period of 4 years. The fair value of unvested phantom units outstanding as of December 31, 2022, totaled $79 million.