What was the total liability for the NQP for Bw Premier Collection as of November 30, 2023?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
e Consolidated Statements of Revenues and Expenses.
The Company's expense related to the NQP was $1.3 million (including a liability increase associated with net investment gains of $1.0 million as of November 30, 2023) and $1.6 million (including a liability reduction associated with net investment losses of $2.0 million as of November 30, 2022) for the years ended November 30, 2023 and 2022, respectively, and is included in compensation, taxes and benefits in the Consolidated Statements of Revenues and Expenses. The Company's total liability for the NQP was $17.3 million and $19.3 million as of November 30, 2023 and 2022, respectively, of which the current portion of $3.9 million and $3.6 million is included in accounts payable and accrued liabilities in the Consolidated Statements of Financial Posi
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's total liability for the Nonqualified Deferred Compensation Plan (NQP) was $17.3 million as of November 30, 2023. Of this amount, $3.9 million is the current portion, which is included in accounts payable and accrued liabilities in the Consolidated Statements of Financial Position.
The NQP is a plan in which key management employees, selected by the Board of Directors, can participate. Participating employees can defer a percentage of their annual salaries and incentive compensation into the NQP. Bw Premier Collection contributes a non-discretionary 3% of an employee's compensation each pay period, and an annual discretionary contribution up to 9% of an employee's annual compensation, as determined by the Board of Directors.
Bw Premier Collection uses a Trust to provide funds to satisfy the NQP liability. The company intends for the NQP and the Trust to be an unfunded arrangement for tax-deferred compensation. The company also intends to fund the Trust and invest its assets to match each participant's investment elections under the NQP, so that the investment gains and losses of the Trust mirror those credited or debited to participants' accounts.