What was the effect through combinations for intangible assets and other assets for Bimbo Foods Bakeries Distribution?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
lows:
| Balance as of | Effects Effects through Balance as of | |---|---| | January 1, | through profit comprehensive Translation Discontinued Business December 31, | | 2022 | or loss income effect operation combinations 2022 | | Allowance for expected credit loss $ (301) | $ (148) $ - $ - $ 11 $ - $ (438) | | Inventories and advances | 16 46 - - - - 62 | | Property, plant and equipment 4,501 | 299 - - (49) 14 4,765 | | Intangible assets and other assets 7,869 | 134 - (2,098) (112) 1,481 7,274 | | Other reserves and provisions (12,501) | 5,030 207 (47) 157 - (7,154) | | Current employee profit sharing (500) | (48) - - 13 - (535) | | Available tax loss carryforwards (303) | (40) - - - - (343) | | Net economic hedge | - (432) 432 - - - - | | Lease assets and liabilities, net (469) | (70) - - 10 - (529) | | Derivative financial instruments 914 | 182 (574) (11) - - 511 | | Total deferred income tax | | | liability/(asset), net $ (774) | $ 4,953 $ 65 $ (2,156) $ 30 $ 1,495 $ 3,613 |
| | 2024 | 2023 | 2022 | |---|---|---|---| | Deferredincome tax asset | $(6,884) | $(7,313) | $(3,962) | | Deferred income tax liability | 8,891 | 9,224 | 7,575 | | Total deferred income tax liability, net | $2,007 | $1,911 | $3,613 | As of December 31, 2024, 2023 and 2022, derivative financial instruments did not generate significant ineffectiveness in the hedging strategies executed.
2.1 Market risk
The Company is exposed to interest rate and foreign currency exchange risks, as well as commodity price risks. The Company occasionally uses derivative financial instruments to mitigate the potential impact of fluctuations in these variables and prices on its financial performance. The Company considers that the derivative financial instruments it enters into provide flexibility that allows for greater financial stability and better visibility and certainty regarding future costs and expenses.
The Company determines the target amounts and parameters of the primary positions for which the derivative financial instruments are contracted in order to minimize one or more of the risks generated by a transaction or group of transactions associated with the primary position.
The Company only enters into derivative financial instruments with financial institutions of well-known solvency and within the limits set for each institution.
The main types of derivative financial instruments used by the Company are as follows:
Contracts that establish a mutual obligation to exchange cash flows on preestablished future dates, at the nominal or reference value (swaps):
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- Interest rate swaps to balance the mix of fixed and variable interest rates used for financial liabilities
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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 effect through combinations on intangible assets and other assets was a gain of $1,481 in 2022, a loss of $828 in 2023, and a gain of $895 in 2024.
Specifically, in 2022, the balance as of January 1 for intangible assets and other assets was $7,869, and after effects through profit or loss, comprehensive income effect, translation, discontinued business operation, and combinations, the balance as of December 31, 2022, was $7,274. The effect through combinations was $1,481.
In 2023, the balance as of the beginning of the year was $7,274, and the balance as of the end of the year was $7,171. The effect through combinations was a loss of $828. In 2024, the balance as of the beginning of the year was $7,171, and the balance as of the end of the year was $8,650. The effect through adjustments was $895.