For Atwell Suites, what amount was recognized in accumulated other comprehensive income as an unrecognized actuarial loss (gain) for the year ended December 31, 2024 (in thousands)?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year Ended | Year Ended | ||
|---|---|---|---|
| December 31 | December 31 | ||
| 2024 2023 | 2024 | 2023 | |
| Fair value of plan assets | $ - $ 250 | $ - $ | - |
| Projected benefit obligation | (31,018) (34,595) | (12,418) | (13,212) |
| Funded status | $ (34,345) $ (31,018) | $(13,212) $ (12,418) | |
| Recognized in the balance sheet as: | |||
| Pension asset – current | $ 250 $ - | $ $ - | - |
| Accrued pension cost – current | (3,249) (3,337) | (1,094) | (1,100) |
| Accrued pension cost – noncurrent | (27,769) (31,258) | (11,324) | (12,112) |
| $ (31,018) $ (34,345) | $ (12,418) $ | (13,212) | |
| Amounts recognized in accumulated | |||
| other comprehensive income: | |||
| Unrecognized actuarial loss (gain) | 1,546 3,380 | (6,702) | (6,920) |
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the amounts recognized in accumulated other comprehensive income as an unrecognized actuarial loss (gain) are detailed in the provided table. For the year ended December 31, 2024, the unrecognized actuarial loss (gain) was $1,546 thousand for one set of data and $(6,702) for another set of data.
These figures reflect changes in the measurement of pension and post-retirement benefit obligations and assets that are not immediately recognized in the income statement. Actuarial gains typically arise when changes in assumptions, such as increased discount rates or changes in mortality rates, decrease the projected benefit obligation. Conversely, actuarial losses occur when these assumptions increase the projected benefit obligation. These gains and losses are initially recorded in other comprehensive income and then amortized into net periodic pension cost over time.
For a prospective Atwell Suites franchisee, understanding these figures is crucial as they reflect the financial health and stability of the company's benefit plans. Significant unrecognized actuarial losses could indicate potential future increases in pension expenses, which might affect the overall profitability of the company. Conversely, unrecognized actuarial gains could suggest a more favorable outlook for future pension costs. Franchisees should consider these factors as part of their due diligence, assessing how these financial elements might impact the long-term sustainability and financial performance of Atwell Suites.