To which reporting units is goodwill allocated for Bw Premier Collection?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
Goodwill is allocated to two reporting units: (i) WorldHotels, and (ii) AutoClerk. Activity by reporting unit in the current and prior period is organized by reporting unit noted below.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, goodwill is allocated to two specific reporting units within the company. These reporting units are WorldHotels and AutoClerk. This allocation is relevant when assessing the potential impairment of goodwill, which Bw Premier Collection evaluates annually.
The company may first assess qualitative factors to determine if it is likely that the fair value of either reporting unit is less than its carrying amount. If this assessment suggests a potential impairment, a quantitative impairment test is performed to determine the actual fair value using income and market methods.
For WorldHotels, Bw Premier Collection performed a quantitative impairment analysis in both 2024 and 2023, determining that the fair value exceeded the carrying value, resulting in no recorded impairment. Conversely, a qualitative impairment analysis was conducted for AutoClerk during the same periods, concluding that the fair value was likely greater than its carrying amount. This process ensures that Bw Premier Collection regularly assesses and accounts for the value of its intangible assets, including goodwill, across its different business segments.