For Bimbo Foods Bakeries Distribution, what is the currency of the notional amount 1,829 in the provided table?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
lows:
| Market value | ||||||
|---|---|---|---|---|---|---|
| Notional | Notional | Rate | ||||
| amount | Currency | amount Currency | Maturity received | Rate paid 2024 | 2023 2022 | |
| 50 | USD | 1,075 | MXN 06-mar-2030 | 4.000% 8.080% $ | 13 $ 194 $ 27 | |
| 50 | USD | 1,033 | MXN 0 |
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, the currency for the notional amount of 1,829 is MXN, which is the currency code for the Mexican Peso. The table provides a snapshot of notional amounts, their corresponding currencies, and maturity dates related to certain financial instruments. In this instance, a notional amount of 100 in USD is paired with a notional amount of 1,829 in MXN, with a maturity date of June 27, 2028.
For a prospective Bimbo Foods Bakeries Distribution franchisee, this information is relevant for understanding the financial exposures and hedging strategies that the company employs. While franchisees may not directly engage in these types of transactions, understanding the financial management practices of the franchisor can provide insight into the overall stability and risk management of the company. The table also shows the rates received and paid, as well as the market value for 2024, 2023 and 2022.
It's important to note that these figures relate to specific financial instruments and may not directly impact the day-to-day operations of a Bimbo Foods Bakeries Distribution franchise. However, understanding how Bimbo Foods Bakeries Distribution manages its financial risks can give franchisees confidence in the long-term viability of the franchise system. Franchisees should consider discussing these financial strategies with Bimbo Foods Bakeries Distribution during their due diligence process to gain a clearer understanding of the company's financial health.