What was the net value of Batteries Plus Bulbs' merchandise inventories in 2022?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
atteries Plus acquired the operating assets of four franchised stores using available cash on-hand. Batteries Plus now operates these locations as Batteries Plus operated stores. The allocation of the $1,991 purchase price was based on the fair value of the assets acquired and liabilities assumed, which is summarized as follows: $495 to inventory, $216 to property and equipment, $3 to other assets, $1,423 to goodwill, and ($146) to current liabilities.
During 2022, Batteries Plus acquired the operating assets of six franchised stores and one warehouse. Batteries Plus now operates these locations as Batteries Plus operated stores. The allocation of the $3,292 purchase price was based on the fair value of the assets acquired and liabilities assumed, which is summarized as follows: $867 to inventory, $287 to property and equipment, $10 to other assets, $2,208 to goodwill, and ($81) to current liabilities. Of this purchase price, $2,362 was cash and $930 was a note payable paid by the Company in January 2023.
Operating results of franchised stores acquired have been included in the accompanying consolidated financial statements from their respective acquisition dates forward.
NOTE M - SALE OF CORPORATE-OWNED STORES
The Company did not sell any corporate-owned stores in 2023.
During 2022, Batteries Plus sold the operating assets of five corporate-owned stores. Batteries Plus no longer operates these locations as Batteries Plus operated stores.
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 FDD, Batteries Plus Bulbs' merchandise inventories are valued at the lower of cost or net realizable value. The cost is determined using the first-in, first-out (FIFO) method for Ascent, which operates the supply chain, and the average-cost method for Batteries Plus Bulbs operated stores.
During 2022, Batteries Plus Bulbs acquired the operating assets of six franchised stores and one warehouse. The allocation of the $3,292 purchase price included $867 allocated to inventory. Additionally, when Batteries Plus Bulbs sold the operating assets of five corporate-owned stores in 2022, $784 was allocated to inventory out of the $1,005 selling price.
Therefore, in 2022, the net value of merchandise inventories can be inferred from two transactions: the acquisition of franchised stores and warehouses, and the sale of corporate-owned stores. The inventory from store acquisitions was valued at $867, while the inventory from the sale of corporate-owned stores was valued at $784. These figures are in thousands of dollars.