What was the total accumulated amortization for Batteries Plus Bulbs in 2022?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
k-free treasury rate at commencement or modification date in determining the present value of lease payments over the lease 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
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the total accumulated amortization related to Right-of-Use (ROU) assets was $5,727,000 as of December 31, 2022. This figure reflects the cumulative amortization expense recognized for the company's ROU assets up to that date.
For a prospective Batteries Plus Bulbs franchisee, understanding accumulated amortization is crucial for assessing the financial health and long-term obligations of the company. ROU assets typically arise from lease agreements, and the accumulated amortization represents the portion of the asset's value that has been expensed over its useful life. A higher accumulated amortization relative to the total ROU assets might indicate that the company has been utilizing these assets for a significant period.
It's important to note that this figure pertains specifically to ROU assets and does not encompass amortization related to other types of assets the company may hold. Franchisees should consider this information in conjunction with other financial metrics and disclosures to gain a comprehensive understanding of Batteries Plus Bulbs's financial position and leasing obligations. Reviewing the complete financial statements and seeking professional financial advice is recommended for a thorough evaluation.