What was the accumulated amortization for Batteries Plus Bulbs' assets ROU in 2024?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
e term. For operating leases that commenced prior to the date of adoption of the new standard, the Company used the treasury rate that best corresponded to the remaining lease term as of the date of adoption.
Operating lease-related assets and liabilities recorded on the consolidated balance sheet are as follows:
| Assets ROU as
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, the accumulated amortization for assets ROU (Right-of-Use) in 2024 was $14,233 (in thousands). This figure represents the total amount of amortization expense recognized for the company's ROU assets as of the end of 2024. ROU assets are assets that represent a company's right to use an underlying asset for the lease term. These assets are amortized over the shorter of the asset's useful life or the lease term. Accumulated amortization is a contra-asset account that reduces the carrying value of the ROU assets on the balance sheet.
For a prospective Batteries Plus Bulbs franchisee, understanding the amortization of ROU assets is crucial because it impacts the franchisee's financial statements and profitability. Amortization expense reduces net income, which in turn affects the franchisee's tax liability and overall financial performance. The accumulated amortization balance provides insight into the extent to which the ROU assets have been used up over time.
It's important to note that the figures are presented in thousands of dollars, so the actual accumulated amortization is $14,233,000. Reviewing these figures in the context of the complete financial statements will provide a more comprehensive understanding of the financial health and performance of Batteries Plus Bulbs.