What was the total accumulated amortization for Batteries Plus Bulbs in 2023?
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 to the remaining lease term as of the date of adoptio
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 accumulated amortization for ROU (Right-of-Use) assets in 2023 was $9,460 (in thousands). This figure reflects the total amount of amortization expense recognized up to December 31, 2023, for the company's right-of-use assets. These assets typically represent the company's rights to use leased properties or equipment over a specified period. The corresponding accumulated amortization for 2022 was $5,727 (in thousands).
For a prospective Batteries Plus Bulbs franchisee, understanding accumulated amortization is crucial for assessing the company's financial health and how it manages its assets. Amortization is a non-cash expense that reflects the reduction in the value of an asset over time. A higher accumulated amortization suggests that the company has been using its assets for a longer period, and their value has decreased accordingly. This can impact the company's profitability and its ability to invest in new assets.
It's important to note that this figure specifically relates to ROU assets, which are primarily associated with leased properties. The table also provides figures for operating lease ROU assets, which were $52,047 in 2023 and $49,306 in 2022. Additionally, the current and non-current portions of operating lease liabilities are detailed, offering a comprehensive view of Batteries Plus Bulbs's lease obligations and asset utilization. Franchisees should consider these factors when evaluating the financial stability and long-term prospects of the franchise.