What was the amount of Caption By Hyatt's goodwill as of December 31, 2024?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
, 2023 | December 6, 2023 |
Accumulated Other Comprehensive Loss—The components of accumulated other comprehensive loss, net of tax impacts, were as follows:
| Balance at January 1, 2024 | Other comprehensive income (loss) before reclassification | Amounts reclassified from accumulated other comprehensive loss | Balance at December 31, 2024 | ||
|---|---|---|---|---|---|
| Foreign currency translation adjustments (1) | $ (156) $ | (94) $ | (1) $ | (251) | |
| AFS debt securities unrealized fair value | 4 | (2) | — | 2 | |
| adjustments | |||||
| Pension liabilities adjustments (2) | — | 2 | (2) | — | |
| Derivative instrument adjustments (3) | (23) | (2) | 5 | (20) | |
| Accumulated other comprehensive loss | $ (175) $ | (96) $ | 2 | $ (269) |
- (1) Amounts reclassified from accumulated other comprehensive loss included realized losses recognized in equity earnings (losses) from unconsolidated hospitality ventures related to the dilution of our ownership interest in an unconsolidated hospitality venture in India (see Note 4), realized gains recognized in equity earnings (losses) from unconsolidated hospitality ventures related to the sale of our ownership interest in an unconsolidated hospitality venture (see Note 4), and realized gains recognized in gains (losses) on sales of real estate and other related to the sale of Park Hyatt Zurich (see Note 7).
- (2) Amounts reclassified from accumulated other comprehensive loss primarily included realized gains recognized in gains (losses) on sales of real estate and other related to the UVC Transaction (see Note 4) and the sale of Park Hyatt Zurich (see Note 7).
- (3) Amounts reclassified from accumulated other comprehensive loss included realized losses recognized in interest expense related to the settlement of interest rate locks. We expect to reclassify $5 million of losses, net of insignificant tax impacts, over the next 12 months.
| Balance at January 1, 2023 | Other comprehensive income (loss) before reclassification | Amounts reclassified from accumulated other comprehensive loss | Balance at December 31, 2023 | |
|---|---|---|---|---|
| Foreign currency translation adjustments | $ (202) $ | 46 | $ — | $ (156) |
| AFS debt securities unrealized fair value | (11) | 12 | 3 | 4 |
| adjustments (4) | ||||
| Derivative instrument adjustments (5) | (29) | 1 | 5 | (23) |
| Accumulated other comprehensive loss | $ (242) $ | 59 | $ 8 | $ (175) |
- (4) Amounts reclassified from accumulated other comprehensive loss included realized losses recognized in other income (loss), net related to marketable securities held for our captive insurance company (see Note 21).
- (5) Amounts reclassified from accumulated other comprehensive loss included realized losses recognized in interest expense related to the settlement of interest rate locks.
17. STOCK-BASED COMPENSATION
Compensation expense and unearned compensation presented below exclude (i) amounts related to employees of our managed hotels and other employees whose payroll is reimbursed, as these expenses have been, and will continue to be, reimbursed by our third-party owners and are recognized in revenues for reimbursed costs and reimbursed costs on our consolidated statements of income and (ii) insignificant amounts related to employees of our owned and leased hotels recognized in owned and leased expenses on our consolidated statements of income.
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the company's goodwill as of December 31, 2024, was $2,869. After accounting for accumulated impairment losses of $328, the net goodwill was $2,541.
Goodwill, in accounting terms, represents the intangible assets acquired in a business combination, such as brand reputation or customer relationships. It is the difference between the purchase price of a business and the fair value of its identifiable net assets. Impairment losses, on the other hand, reflect a decrease in the value of goodwill when its carrying amount exceeds its fair value.
For a prospective Caption By Hyatt franchisee, these figures provide insight into the financial health and valuation of the overall Hyatt Franchising, L.L.C. business. While goodwill itself isn't a tangible asset that directly impacts day-to-day operations, it reflects the perceived value and strength of the brand. A significant goodwill balance suggests that Hyatt has made successful acquisitions or has a strong brand reputation. However, franchisees should also pay attention to impairment losses, as these can indicate potential challenges or write-downs in the value of acquired assets.
It's important to note that these figures pertain to Hyatt Franchising, L.L.C. as a whole and not specifically to the Caption By Hyatt brand. However, the overall financial health of the parent company can indirectly impact the support and resources available to franchisees. Therefore, prospective franchisees should consider these figures as part of their overall due diligence process.