What was the value of land under operating leases for Aplus in 2023?
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 Dec |
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the company does not specifically list the value of land under operating leases. However, the document does provide information on the total value of assets under operating leases. As of December 31, 2023, Aplus had operating lease right-of-use assets, net, valued at $506 million. This figure represents the net value of all assets under operating leases, which may include land, buildings, and equipment.
Prospective franchisees should note that this $506 million figure is a net value, meaning it accounts for depreciation and amortization. The gross value of assets under operating leases would be higher. Additionally, the FDD provides a breakdown of lease liabilities, including operating lease current liabilities of $22 million and operating lease non-current liabilities of $511 million as of December 31, 2023.
For a more detailed understanding of the composition of Aplus's operating leases, including the specific value of land under lease, a prospective franchisee should consider asking Aplus for a more granular breakdown. Understanding the nature and value of the underlying assets is crucial for assessing the company's financial health and lease obligations. This information would be helpful in evaluating the long-term financial commitments associated with these leases.
While the FDD provides a general overview of Aplus's lease obligations and assets, it lacks the specificity needed to isolate the value of land under operating leases. Therefore, further due diligence and direct inquiry with Aplus are necessary to obtain this information.