For Bimbo Foods Bakeries Distribution, what was the notional amount in USD for the currency exchange with CAD?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
ions:
| Market value | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Notional | Notional | Rate | |||||||
| amount | Currency | amount | Currency Maturity | received | Rate paid | 2024 | 2023 | 2022 | |
| 100 | USD | 131 | CAD 10-nov-2047 | - | - $ 103 | $ 87 $ | - | ||
| 120 | USD | 158 | CAD 10-nov-2047 | - 0.020% | 135 $ 238 | 116 $ 203 $ | - - | #### An analysis of the maturities of these forwards as of December 31, 2024, is as follows: |
| < 1 | > 1 month | > 3 months | > 6 months | > 9 months | ||
|---|---|---|---|---|---|---|
| Month | < 3 months | < 6 months | < 9 months | < 12 months | Total | |
| Mexico | _ | |||||
| Notional amount in USD | 20 | 44 | 54 | 4 | 23 | 145 |
| Average exchange rate | 19.20 | 19.12 | 19.45 | 20.39 |
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, several notional amounts in USD for currency exchange with CAD are listed. One instance shows notional amounts of 100 USD to 131 CAD and 120 USD to 158 CAD, both with a maturity date of 10-nov-2047. Another table shows that for the month of December 2024, the notional amount was 29 USD, and for December 2023, the notional amount was 118 USD. For Canada, the notional amount in USD is detailed across different timeframes: 12 USD for less than 3 months, 23 USD for less than 6 months, 32 USD for less than 9 months, 27 USD for less than 12 months, totaling 112 USD.
These figures represent the principal amount used to calculate interest or payments in a financial transaction involving currency exchange between USD and CAD. It is important to note that these are notional amounts and do not represent actual cash flows. Instead, they serve as a reference point for determining the value of the currency exchange.
A prospective franchisee should understand these notional amounts to assess the potential financial exposures and obligations related to currency exchange. These amounts can fluctuate based on market conditions and exchange rates, impacting the overall profitability and financial stability of the franchise. It is advisable for potential franchisees to consult with a financial advisor to fully understand the implications of these currency exchanges and how they may affect their investment.
Understanding the average exchange rates is also crucial, as these rates determine the actual cost or benefit of converting currencies. For example, the average exchange rate for Canada in the provided table is 1.33 for less than 3 months and 1.35 for less than 9 and 12 months, indicating the amount of CAD received for each USD. Monitoring these rates and understanding their impact on financial transactions is essential for effective financial management.