On what date does Batteries Plus Bulbs annually assess goodwill for impairment?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
r the difference between the carrying value of the asset and its estimated fair value based on discounted net future cash flows. The Company performed an assessment of property and equipment in 2024 and 2023, which resulted in no impairment to long-lived assets.
Goodwill and Other Intangible Assets
Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed at the date of acquisition. Goodwill is not amortized, but is assessed for impairment at the reporting unit level annually on October 31, or when events or conditions indicate that the goodwill might be impaired. Other intangible assets consist of contractual relationship, proprietary software, customer relationships and trade name. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. Indefinite-lived intangible assets are not amortized, but assessed for impairment at least annually or when events or conditions indicate they might be impaired.
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, goodwill, which represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed at the date of acquisition, is assessed for impairment at the reporting unit level annually on October 31st. However, the assessment may occur earlier if events or conditions indicate that the goodwill might be impaired.
Goodwill is not amortized. Other intangible assets include contractual relationships, proprietary software, customer relationships, and trade names. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, while indefinite-lived intangible assets are not amortized but are assessed for impairment at least annually or when events or conditions suggest they might be impaired.
In both 2024 and 2023, Batteries Plus Bulbs elected to perform a qualitative assessment of goodwill and other intangible assets, as allowed in ASC 350, because the company believed there was a low probability of impairment. These qualitative assessments resulted in no indication of impairment, and therefore, no further quantitative analysis was performed.