How often are AFS securities assessed for expected credit losses by Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
AFS securities are assessed quarterly for expected credit losses, which are recognized in other income (loss), net on our consolidated statements of income.
In determining the allowance for credit losses, we evaluate AFS securities at the individual security level and consider our investment strategy, current market conditions, financial strength of the underlying investments, term to maturity, credit rating, and our intent and ability to sell the securities.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, AFS (available-for-sale) securities are evaluated quarterly to determine expected credit losses. These expected credit losses are then recognized in the company's consolidated statements of income as part of other income (loss), net.
In assessing these securities, Caption By Hyatt reviews them at the individual security level. They take into account their investment strategy, prevailing market conditions, the financial stability of the underlying investments, the time remaining until maturity, credit ratings, and their own intent and ability to sell the securities.
This quarterly assessment and comprehensive evaluation process is crucial for Caption By Hyatt to accurately reflect the financial health of their investments and ensure compliance with accounting standards. For a prospective franchisee, this indicates that Caption By Hyatt actively manages and monitors its financial assets, which can contribute to the overall stability and reliability of the franchise system.