As of November 30, 2023, what was the balance of the Trust used by Bw Premier Collection for the NQP?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
of a participating employee's annual compensation.
The Company utilizes a Trust, whereby the Company makes contributions to this Trust to provide the Company a source of funds to assist in satisfying the NQP liability. It is the intention of the Company that the NQP and the Trust shall constitute an unfunded arrangement for the purpose of providing tax-deferred compensation in accordance with Title I of the Employee Retirement Income Security Act of 1974, as amended. It is also the intention of the Company to fund the Trust and have its assets invested in a manner that matches each participant's deemed investment elections under the NQP, so that the investment gains and losses of the Trust mirror the investment gains and losses credited/debited to participants' accounts. The Trust balance was $17.0 million and $19.1 million as of November 30, 2023 and 2022, respectively. Realized and unrealized gains and losses on these investments were realized gains of $0.3 million and unrealized gains of $0.7 million, for the year ended November 30, 2023, and were realized gains of $0.5 million and unrealized losses of $2.5 million, for the year ended November 30, 2022, and are recognized in net realized and unrealized gains (losses) on investments, interest and dividend income, and interest expense in t
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the company utilizes a Trust to provide a source of funds to assist in satisfying the NQP (Nonqualified Deferred Compensation Plan) liability. As of November 30, 2023, the balance of this Trust was $17.0 million. In comparison, the Trust balance was $19.1 million as of November 30, 2022.
The NQP is a defined contribution plan where key management employees, selected by the Board of Directors, can defer a percentage of their annual salaries and incentive compensation. Bw Premier Collection contributes to the NQP by providing a non-discretionary contribution of 3% of a participating employee's compensation each pay period, and an annual discretionary contribution, as determined by the Board of Directors, up to 9% of a participating employee's annual compensation.
The intention of Bw Premier Collection is that the NQP and the Trust constitute an unfunded arrangement for providing tax-deferred compensation, in accordance with the Employee Retirement Income Security Act of 1974. The company aims to fund the Trust and invest its assets in a way that mirrors each participant's investment elections under the NQP. This ensures that the investment gains and losses of the Trust reflect those credited or debited to the participants' accounts.
For the year ended November 30, 2023, the Trust experienced realized gains of $0.3 million and unrealized gains of $0.7 million. These gains and losses are recognized in the Consolidated Statements of Revenues and Expenses as net realized and unrealized gains (losses) on investments, interest and dividend income, and interest expense.